"The cake has become smaller and we have more guests at the table". With this metaphor Oliver Blume - CEO of the Volkswagen Group - illustrated the current situation on the European car market, and there is little need for further explanation.
"Fewer cars are being sold in Europe. At the same time, new competitors from Asia are overwhelmingly occupying the market," he said. An already complex situation that has to contend with fierce competitors. Statements made by Blume to Bild - Germany's leading newspaper - during a lengthy interview.
Alarming situation
This is how Blume defined the state of the Volkswagen brand, grappling with an unprecedented crisis. However, according to the German manager, this does not mean that Wolfsburg is thinking about layoffs or factory closures. Actions are therefore excluded for now.
However, Blume emphasised that the situation cannot remain unchanged, speaking of a willingness to dare to return to the splendour of the past. "Volkswagen also contains the word dare. We must dare again: dare to be successful."
Volkswagen ID.3
The whys of the crisis
But what exactly is going on at Volkswagen? The German brand has seen a decline in sales over the years, even losing the first position among the best-selling cars in Europe, held by the Golf for years and occupied in 2023 by the Tesla Model Y.
It is an electric car that conquers the motorists of the Old Continent and in which Wolfsburg has put a lot of effort, creating a dedicated platform (the MEB) at the basis of numerous models, which have not, however, managed to conquer the market. European motorists still remain sceptical about battery-only mobility, with the EU still looking ahead to a 2035 without petrol and diesel engines, although anticipating something new.
In addition, there is the Chinese market, which is not taking off, and the software problems, which have recently been resolved but still do not allow Volkswagen to excel in an increasingly neuralgic sector in the automotive world.
Volkswagen bosses talk: