The VW Group is DOOMED Even if it closes 4 factories and fires 140,000

[00:00:00]140,000 people at the Volkswagen Group, it looks like are likely to be fired.

[00:00:06]They are fighting this right now in Germany, but it appears that it is probably going to happen.

[00:00:11]Why is this happening? Why are the Volkswagen Group doing this? Well, they are facing very big cost disadvantages versus their rivals.

[00:00:19]Volkswagen's chief executive, Oliver Blume, has said 140,000 jobs will go over the next 4 to 5 years.

[00:00:28]Now, of course, the Volkswagen Group is to some degree, um, ruled by their union. And the union has a lot of power.

[00:00:37]The reason they fired their last CEO because was he told them they had to change the way they were doing things, and they had to get rid of a lot of people.

[00:00:46]They had to become more efficient, and they had to make more EVs. And they fired him for that.

[00:00:51]But, after he went, well, the next CEO said the same exact thing.

[00:00:56]An internal memo that Blume sent to staff earlier this month said that having already committed to cutting 50,000 jobs, Volkswagen is now weighing another 50,000 for further cost-cutting.

[00:01:08]So, there's also an additional 40,000 on top of that. So, it comes to a total of 140,000.

[00:01:15]The bleeding includes planned factory closures after 2030, which put an additional 40,000 jobs on the line.

[00:01:24]Volkswagen is carrying a 20% cost disadvantage versus its competitors.

[00:01:30]And, but that's really not against its Chinese competitors. If you look at their Chinese competitors, they're making EVs for 50% less money, according to some analysts.

[00:01:42]On the Electric Viking website, I'll put a link in the description below, we have more articles about electric cars and battery technology than any other website that I'm aware of in the world. So, check that out. Link is in the description. And there you'll find our videos and analysis and articles about everything going on in the EV world. Several models are going to be canceled, including the Volkswagen Polo petrol car, Škoda Fabia petrol car, the Kamiq petrol car, Audi Q5 Sportback petrol car, as in all gas cars, and a handful of Porsches, among them the Taycan, the Panamera, and the Cayenne Coupe. I just saw a Taycan today. It's a really good-looking car.

[00:02:24]But you can see why it doesn't sell that well. I mean, it's a sedan. Sedans just don't sell.

[00:02:30]As of today, we still cannot confirm competitive use cases for the plants of Emden, Hanover, Zwickau, and Neckarsulm in the 2030s. In other words, we're going to shut down four factories.

[00:02:41]That's a lot.

[00:02:43]Reuters reports the group could gradually halve its lineup of models to save costs, and Volkswagen has confirmed it will get rid of a lot of different models. And this is not just from the Volkswagen brand. This is across its complete group of brands. SEAT, Cupra, you know, same thing is happening here.

[00:03:01]The German automotive empire is clearly crumbling.

[00:03:06]Meetings will start next month. They've all been already been going on for years. The meetings upon meetings upon meetings. I think Volkswagen Group, one of the biggest problems for them is a literal ton of meetings. People there are just getting basically, they're swimming in a sea of meetings.

[00:03:23]That's one of the big problems with their inefficiency. But, not more meetings.

[00:03:28]And they kind of can't avoid this because there is so much conflict from being the amount of power the works union has at the Volkswagen Group.

[00:03:36]Volkswagen need to convince their own union, essentially, that they have to do this to to survive and to stay alive.

[00:03:43]That is going to be very, very difficult to do.

[00:03:46]Now, Blume will first attend meetings with staff at the group's Wolfsburg headquarters in Germany on the 25th of August before speaking with the works council and members at the Emden and Zwickau plants the following day.

[00:03:58]But ultimately, all this talking, and it's been going on for what, 2 years now, is going to end in uh Volkswagen's demise either sooner or later.

[00:04:13]If they can kind of mm skip all the bureaucracy, get to what they've got to do, cancel these four factories within the next couple of years, become an efficient company, I don't know if that's possible. If they can do that, they can stay alive. They can't, they just can't stay alive. Let's be honest, it's it's not possible. Their costs are so much higher than their competitors.

[00:04:33]So, I think they're aware of this.

[00:04:36]They're They're also aware that their sales in China are falling, their sales are not only their sales falling, but their profitability is crashing. And they don't have years. They don't have to They don't have 4 years to wait till 2030 to make these decisions. They have to make them now.

[00:04:51]But I can't see the bureaucracy um just suddenly disappearing and this big group being able to suddenly quickly move to quickly move like a a smaller company.

[00:05:01]They're just not that. They're this enormous Titanic ship and there's a an enormous iceberg and they can see it and they're all discussing things and talking about stuff and and there's an iceberg and it's getting closer and closer.

[00:05:15]What do you guys think?

[00:05:17]Let me know your thoughts in the comments. Thanks for watching. Need expert advice on what car to buy, what solar system to get, what home battery to get, or potentially for your business, you can get guys a one-on-one consultation directly with me.

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