Volkswagen Group has reported a 7% decline in global deliveries for the third quarter, highlighting significant challenges facing Europe’s automotive industry. The decrease in demand from China and rising production costs in Europe are key factors contributing to these difficulties. Additionally, the ongoing trade tensions between the European Union and China over tariffs on Chinese electric vehicles (EVs), due to alleged subsidies, further complicate the situation for European carmakers.
Volkswagen, the largest automaker in Europe, is undergoing a major restructuring and may even consider closing plants in Germany for the first time. The company is grappling with low European demand, growing competition from Chinese manufacturers, especially in the EV space, and the high costs of production in Germany. Marco Schubert, a member of VW’s executive committee, emphasised the need for a more competitive cost structure, particularly in Germany, to maintain success in this challenging environment.
