Volkswagen knows its future lies in selling cheap electric vehicles. The problem is that he doesn’t know how to do it.

The Paris Motor Show leaves no trace of new products among European manufacturers (with the exception of some French models such as the Renault 4, or the achievements of the Citroën C5 Aircross as the most notable offerings). But it helps those in charge speak up and explain their current situation and how they see the future.

This was done by Carlos Tavares, CEO of Stellantis, who insisted that the regulatory path taken by Europe was self-defeating. Or Oliver Zipse, CEO of BMW, who argues that our continent’s climate goals are unrealistic from a mobility perspective.

And they also talked since then Volkswagen. Although in this case they were not looking out, but from behind closed doors. The company is plunged into an electric transition that has stifled it: sales expectations are falling short, sales have plummeted in China, and investments in new platforms are difficult to recoup.

Consequently, Oliver Blume, CEO of the Volkswagen Group, has already called on his companies to save 10 billion euros over the next three years. Part of these savings should include reductions in vehicle production and development costs, as those responsible for Volkswagen themselves explained at the French event.

The formula is clear: cheaper

Coming to this conclusion does not seem very difficult. The difficulty lies in how to achieve the proposed goals.

“Our cars will look amazing and will be equipped with the technology needed to revolutionize the market. To achieve this in an extremely competitive market, we must produce these vehicles in such a way that profitable and launch them at affordable prices“Thomas Schäfer, head of the Volkswagen brand, assured the German media. Auto Motor and Sports.

While this may seem like a truism, it doesn’t seem like an easy task. In this spirit, Volkswagen is already openly talking about cutting labor costs by 40% per hour worked per employee. And to achieve this, it is planned to reduce the number of engineers responsible for each new launch.

Schaefer, however, did not specify what this would entail. staff reduction nor about the consequences this may have on the cars they put up for sale. It should be remembered that Volkswagen has recently entered into new agreements with Chinese companies such as Xpeng, with the aim of improving the software of its upcoming releases and, above all, getting closer to its competitors in China.

The company’s top officials were talking about future launches. Schäfer says he’s very excited about the Volkswagen ID.2, a car that needs to start. below 25,000 euros and they hope to turn it into a car that will mark the company’s recent history.

This leading role should have been reserved for the Volkswagen ID.3, which was supposed to be marketed as an “electric Golf” but whose high cost prevented it from achieving the desired sales. Volkswagen’s commitment to the ID.2 seems clear: lower the price and do a 180-degree turn on its aesthetics.

Preview images of the new electric model make it clear that Volkswagen wants to bring back an aesthetic closer to that of internal combustion engine cars. What Martin Sander, Head of Sales and Marketing, has essentially confirmed. Trainer. Speaking to the media, he left the door open for a future all-electric Volkswagen Golf, which differs from the combustion engine model only in the technology used, but retains the same aesthetics.

Such solutions will help the company maintain a reduction in development time. Now they’re waiting invest 36 months in development car for 50 months, which they previously needed. That the future Volkswagen ID.2 will be mounted on a modified MEB platform, as explained in Hybrids and electricswhich has already been predicted to have little future, or the fact that the Golfs with an internal combustion engine and an electric engine retain a significant part of the distinctive features should contribute to this.

However, we will have to continue to wait until next year for the upcoming €25,000 Volkswagen ID.2. The question now is whether the German company can compete with models from Renault, Kia or Stellantis, which are already producing cars priced between 25,000 and 30,000 euros more than a year before they saw Volkswagen’s offer.

Photo | Volkswagen

In Hatak | Volkswagen’s crisis represents a scenario unprecedented in its 87-year history: plant closures and forced layoffs.