"Too expensive for our customers": the surprising confession of the CEO of Volkswagen about gasoline engines

A bewildering and juicy observation. The CEO of Volkswagen, Oliver Blume, offers a frank look at a troubling reality: gasoline cars are now too expensive for his customers. Who would have thought that the head of this automotive industry icon would make such a confession? It's as if the king of the party stood up to say that there's no more beer at the bar! Times are changing, and with them, the world of automobiles too.

Yet, there was a time when these combustion engines were the darlings of drivers. Now, they seem more like that old dusty cabinet that no one wants. Whether it's complying with new environmental regulations or rising production costs, Volkswagen appears to be leading cars that cost more than a Michelin-starred dinner in Paris. An amusing situation for a company of this magnitude.

But what could push an automotive legend to declare that its flagship products are too expensive? Perhaps the energy transition, with its batteries, wires, and regulations, is transforming the automotive landscape into an impenetrable jungle. From diesel to all-electric, times have changed, and the real question is: who is going to pay for this madness?

Indeed, in the effort to reduce its carbon footprint, Volkswagen faces a dilemma. On one side, there are the customers eager to keep their precious gasoline engines, which, rightly or wrongly, seem inferior to the promises of electric range. On the other, there are the rising production costs, a sea of regulations, and a market evolving at lightning speed. If Europe is so obsessed with transitioning to electric, why leave behind this exceptional toy that is the gasoline engine?

Production failures and supply chain disruptions are no longer exclusively reserved for chocolate croissants at bakeries, but are also affecting the automotive industry. As the German company washes its hands of the consequences of this transition, other players, such as Chinese manufacturers, continue to grow, preparing their own explosive mix of thermal and electric engines. No matter their strategy regarding the energy transition, they seem a bit more pragmatic than the enigmatic Brussels bureaucracy.

Blume confirmed: there is no sense in creating thermal models that are too expensive for his customers. Can the high costs of manufacturing gasoline engines really accommodate the profit margins demanded by a fierce market? To meet demand, Volkswagen is moving away from traditional models. The promise of a compact electric vehicle affordable to everyone seems illusory, given how new standards have inflated their initial price. Let's remember that most customers don't want technology at the price of a small castle in Spain.

So here we are at the threshold of an era where the engine price can no longer rhyme with the pleasure of driving. Electric has its virtues, no doubt, but who could imagine a world where gasoline cars become collectible objects reserved for discerning enthusiasts? Brand fans are right to be concerned: with this frustrating trend, the future looks uncertain for the production of modern automotive icons. This confession leaves us wanting more, a sense of irony and frustration at once.

In conclusion, Blume says out loud what many think quietly. The leaders of major brands must get to the point, avoid skyrocketing their product prices, and find the right balance between innovation and affordability. Otherwise, who will come to the rescue of this industry in transformation? Perhaps this act of transparency will mark the beginning of an era where drivers won't have to choose between their passion for cars and a blown-up wallet.

Source: www.clubic.com

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