Volkswagen’s reported plans for deeper job cuts and possible German plant closures have turned into a warning sign for the wider car industry. The company is being hit by weaker demand, high costs, US
I have been working in German Automotive industry for more than 15 years. The mindset of Chinese companies is very different. If you talk with Chineese partners for any technical negotiation they come to a conclusion within 24 hours even if decision requires approval from the highest management level. Where German side makes the conclusion on the fastest track in 3 weeks. It is really frustrating and makes a ripple effect with delays and quality issues in the final product.
The problem is not labor cost. As usual, it’s the cars themselves. The cars designed for mass production are not adequately competitive. The workers merely assemble what they are told to assemble.
Finally someone says the fact. Arrogance and underestimation of the emerging market (EV) of German giant companies brought themselves into this situation. It's too late to turn things around. German car companies had everything to 'compete' with Chinese car makers many years ago but they were too slow to react. They should have done more aggressively since the early days of Tesla, instead of waiting until Chinese EV makers already are strong.
VW is on the one-way direction towards the liquidation is no longer an overstatement. They are like "Yahoo", just watching Google and Amazon rising to the power without trying to do anything.
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I was surprised to know this.
VW is on the one-way direction towards the liquidation is no longer an overstatement. They are like "Yahoo", just watching Google and Amazon rising to the power without trying to do anything.