The entire industry is in crisis, not just Volkswagen. In China, which promotes itself as the future EV market, only 3 of its 129 car brands are profitable (BYD, Xiaomi, Leapmotor), and all three of them show shrinking profits. This is despite Chinese brands benefiting from tremendous subsidy regulations that have never been available for their global competitors, a cheap workforce through forced labour regimes, which allows them to produce massive overcapacity that Chinese brands then need to sell globally due to a shrinking domestic Chinese market. This overcapacity is a decisive reason for the entire sector’s crisis imo.
The entire industry is in crisis, not just Volkswagen. In China, which promotes itself as the future EV market, only 3 of its 129 car brands are profitable (BYD, Xiaomi, Leapmotor), and all three of them show shrinking profits. This is despite Chinese brands benefiting from tremendous subsidy regulations that have never been available for their global competitors, a cheap workforce through forced labour regimes, which allows them to produce massive overcapacity that Chinese brands then need to sell globally due to a shrinking domestic Chinese market. This overcapacity is a decisive reason for the entire sector’s crisis imo.