What will become of Volkswagen?

From KlimaNachrichten

By KlimaNachrichten Editor

The bad news about Volkswagen does not stop, but neither do the clever tips from politicians. In the process, the strangest things come to light. Lower Saxony’s Minister of Economic Affairs Lies (the state has a 12% stake in VW) knew nothing about the manufacturer’s processes and problems until the press release. He is not on the supervisory board. The state’s Minister of Economic Affairs once sat there, but he was replaced by a Green Minister of Culture. Not for reasons of competence, but because she is with the Greens and deputy to the prime minister. Are the two talking to each other? It’s hard to say.

So Lies was caught off guard and he also noted in the media that energy prices in Germany are causing Volkswagen problems. It is hard to imagine what would have happened if the state had allowed the two nuclear power plants there to continue to operate, even if this is a decision of the federal government. It is also a bit crazy that energy prices are rising because of the energy transition and the restructuring of the grid. A self-fulfilling prophecy, except for Lies, who wants to solve the problem with new subsidies.

So the consumer is failing, he is buying too few electric cars, for whatever reason. The slump in registration figures does not only affect Volkswagen. They are also declining for combustion engines, which says a lot about the economic situation in Germany. According to the Federal Motor Transport Authority, the number of registrations fell by 28% compared to the same month last year. In the case of e-cars, the number even fell by almost 70%. Volkswagen has been told very clearly that there is only one way and that is e-mobility.
Surprisingly, the plants that still produce combustion cars are doing very well.

One reads more and more that the current Green Federal Minister of Economics Habeck stated as early as 2019 that VW would only survive if it produced an e-car model for less than 20,000 euros. The largest proportional cost factor for an electric car is likely to be the battery of a car. In a small car, it is more important in terms of price than in a mid-range car. The battery can account for between 30-40% in a vehicle. If even a small car like a Fiat 500 in the electric version is 30% higher than the price of the combustion version, then the dilemma becomes clear. Battery prices will only fall with mass production and manufacturers are still a long way from that. So it’s the chicken/egg problem. According to T-Online, the manufacturer Volvo, which has Chinese owners, has shelved its plans for 100% electric by 2030.

“The Swedish car manufacturer Volvo has cashed in on its goal of producing only fully electric cars by 2030. However, the company, which belongs to the Chinese group Geely, only revised the target slightly downwards – to “90 to 100 percent”, as it announced on Wednesday. Up to ten percent of new cars could also be hybrid models “if necessary”. Volvo cited the lack of expansion of the charging infrastructure in some markets as the main reason.”

Volvo also does not offer a small car for 20,000 euros. According to Habeck’s prophecy, the company will then probably be doomed.


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