Tesla forced Volkswagen CEO to speed up to avoid similar fate to Nokia

CEO of Volkswagen (VW), Herbert Diess, said the German car maker will surely get in the spot if it does not do something soon and very quickly.

Even with a famous car brand like Volkswagen, things can still get out of control. The truth is that their fate will be extremely terrible, like the way the CEO of the company compared VW to a once-famous phone brand that claimed popularity in the market, but ultimately could not stay awake and then fall into. pimple scene.

Germany – which wants to switch to greener vehicles and lower emissions – introduced stricter laws after Volkswagen admitted cheating on emissions tests in 2015. The incident was named “Dieselgate” which was just the surface of the iceberg. The German car manufacturer has no choice but to follow harsh standards and quickly develop electric vehicles – of course, this requires the company to reallocate capital, cut reduce costs, and find ways to keep up with the technology needed.

” The big question is: Are we fast enough? If we continue at the current speed, things will be very difficult. In short, this is probably the most difficult challenge Volkswagen has ever faced. “- Deiss told senior managers in the company during a global board meeting.

In September last year, the European Parliament’s environmental committee approved plans to cut carbon dioxide emissions by 45% between 2021 and 2030, and reach 20% of all electric vehicles. by 2025 and 50% by 2030. If Volkswagen does not meet these targets by 2021, PA Consulting estimates VW will face a fine of up to 4.5 billion Euro.

Like Diess emphasized, this is not an easy task, and the brand needs to improve productivity and reduce costs – it will be a major overhaul, prompting the German carmaker to re-build. oriented to be able to produce EVs and battery cores that meet emissions laws, while retaining profit margins.

Analysts from consulting firm Wood Mackenzie forecast that Volkswagen could become the largest EV manufacturer by 2030, producing between 14 and 16 million green cars. However, the road to this goal is still long, when VW will need to capture 53% market share of the global electric car market from now on and during the next 8 years. It also needs to produce about 57% of all battery packs for electric cars.

Volkswagen ID.3 and Tesla Model 3

There is another problem for Volkswagen: Tesla could make them the next Nokia!

Tesla has come up with reasonable strategies in every market. They became the most valuable car brand in the world, overshadowing every American car company ahead, and turned those who once opposed to “pious sheep”.

Silicon Valley-based electric car maker also puts a foot in Volkswagen’s backyard. Tesla is currently gearing up to start building the Gigafactory 4 in Brandenburg, which will produce about 150,000 electric cars after completion and will gradually increase the number to 500,000 products per year. Once Model Y and Model 3 are manufactured at Gigafactory 4, Tesla will surely “bite” a big chunk of VW’s market share in Germany and the rest of the region. The American car brand will launch a series of punches that will make VW and other German carmakers knockout before they even know it. Elon Musk and his team have acquired the technology needed to dominate the electric car market.

Similarly, Tesla has established a strong presence in China with the Gigafactory 3 in Shanghai, and the Chinese government is also eager to support Tesla, seeing the brand as a catalyst to activate the industry. domestic electric car industry. Recently, Tesla was able to reduce the price of the Model 3 made in China, and this mass-produced sedan is likely to become the golden egg of Musk’s car brand. They also look to design Chinese-style Tesla cars, perhaps the low-cost cars needed for Tesla to capture a larger market share. And like Elon Musk, the CEO of Tesla, these cars will be not just for China but for the rest of the world.

If Volkswagen does not want to be the second Nokia, it will have to be quick to catch up and catch Tesla in a game where Tesla knows better than anyone. Volkswagen is in a position to make no mistake when it comes to the electric car market. But at the moment, Tesla is a very strong opponent; Deiss and his team can only look and … scratch their heads!

Reference: Teslarati