Volkswagen (VW) may seem uniquely German with its Beetle, Golf, Polo and Bus models, but the carmaker has a huge global footprint and depends on many other countries to keep the assembly lines running.

Recently, a changing auto market, especially when it comes to electric vehicles, and possible miscalculations by management have started to derail its success.

New vehicle demand is down in Europe and may never reach pre-pandemic levels that once saw 17 million vehicles sold a year. Demand for VWs, in particular, is in the crosshairs, especially as Chinese rivals take over the global market for electric vehicles.

Last year, the VW brand, the biggest brand in the 12-brand Volkswagen Group, sold 4.80 million passenger cars worldwide, 1.4% less than in 2023, hurt by lower sales in key market China. Operating profit plummeted nearly 37% to €1.34 billion in the first three quarters of 2024 from €2.12 billion in the same period in 2023 because of higher fixed costs and restructuring, according to a company press release.

At home in Germany, VW is in turmoil. The company has announced drastic cuts. Surging energy prices since Russian gas was turned off over the Ukraine war, Chinese competition, the cost of German workers and looming tariffs amid Donald Trump's return to the White House are making business as usual........

© Deutsche Welle