VW is today showing the new edition of one of its currently most successful models. The fact that this is a combustion engine is emblematic of the car manufacturer’s situation. Because things aren’t going well with electric cars at the moment.
Volkswagen usually likes to celebrate world premieres in front of journalists in glamorous locations. Things are different with the new Tiguan: as an exception, it will not be presented in Paris, Geneva or New York.
The third generation of the best-selling car is being shown for the first time today in Hall 11 of the main plant in Wolfsburg. Very down-to-earth in front of several thousand employees. Volkswagen says this is a sign of appreciation for those who build the car.
The tone between the workforce and the company is becoming harsher
Once the board and employees have taken their selfies with the Tiguan on stage, things will probably continue to be less celebratory. At the subsequent works meeting, Volkswagen’s works council boss Daniela Cavallo wants to ask urgent questions about the announced austerity program.
In May it was announced that the weak core brand VW should significantly increase its returns by 2026. However, no details are known yet. The tone between management and the works council is likely to become rougher in the next few months.
Business with electric cars is weakening
The fact that a combustion engine model is being celebrated at VW in Wolfsburg today symbolically shows the car manufacturer’s situation: business with combustion engines is going well; They pour the money into Volkswagen’s coffers. Demand for electric models, on the other hand, has stalled: at the flagship electric car factory in Zwickau, Saxony, the contracts of almost 270 temporary workers will not be renewed.
The models ID3, ID4 and ID5, among others, are built in VW’s only pure electric factory. It is feared that more temporary employees will have to leave. At the Emden site, where Volkswagen builds the ID4, the contracts of 300 employees were also not renewed.
Really just an “intermediate low”?
The desire for electric cars in Germany has recently been significantly dampened. Analysts see several reasons: a lower purchase premium, inflation, high prices and sometimes long delivery times for pure electric models. For the Volkswagen Board of Directors, this is still no reason to correct course.
The head of the core VW brand, Thomas Schäfer, spoke of an “intermediate low” at the beginning of the month. He assumes that the share of electric cars in Europe will increase significantly in the coming years. He will probably emphasize to the workforce today that Volkswagen is not on the wrong track with its electric car course.
Lower VAT as an incentive to buy
Lower Saxony’s Economics Minister Olaf Lies is convinced that it must be made more palatable for car buyers to buy an electric vehicle. The SPD politician has suggested, among other things, reducing the VAT on electric cars in order to create an incentive.
In any case, politicians have to make a decision quickly, said Lies. “It’s now about securing market shares in the electromobility segment among European and German car manufacturers.”