Part 5/8:
Volkswagen has been forced to pivot its sales strategies, moving towards selling more EVs at the expense of traditionally more profitable combustion engine vehicles. This shift creates a perilous balancing act for the company, as they now face penalties for pushing combustion engine sales while trying to ramp up their EV output—a segment wherein they lack a competitive edge.
The Road Ahead Looks Grim
Significantly, Volkswagen derives around 50% of its profits from China, which places immense pressure on the company amidst announcements of major sales downturns in that market. Current projections suggest sales will not increase, begging the question of how Volkswagen will manage the financial strain against a backdrop of immense debt, escalating factory costs, and heavy fines.