Volkswagen faces the Chinese challenge: the brand justifies its strategy to ensure that its electric cars remain iconic, despite persistent skepticism

Ah, Volkswagen, this once-untouchable mastodon of the automobile industry, now finds itself justifying its place in the market while facing an insatiable Chinese dragon. One could say we are not at a turning point, but rather at a tight 180-degree turn!

A reputation in tatters

Everything seemed to smile on Volkswagen—sales soaring like mushrooms after rain and an empire expanding from Europe to China. And then, Dieselgate hit like a kick in the rear. With production costs skyrocketing and an armed invasion from Chinese brands such as BYD and Xpeng, it’s no wonder executives feel a cold sweat running down their necks. Add to that the tears over completely out-of-date software, and there you have it, the explosive cocktail is served!

Who said the grass is greener in China?

With new electric models like the ID. Polo and ID. Cross, Volkswagen seems eager to make up for lost time. These little wonders, promised at under 25,000 euros, resemble a campaign promise worthy of a politician, the kind that gives fiery speeches but has never set foot on the ground! Kai Grünitz, the big boss of technical development, firmly believes that what differentiates Volkswagen from the Chinese darlings is what he calls the “popometer”. Yes, really, the popometer! One could believe that bonfires and construction vehicles are part of the equation.

A software worthy of the name?

The infamous Volkswagen software, Cariad, is compared here to a theatrical play with an unlimited budget turning into a B-movie. The repeated delays deserve an excellence award. But wait, let’s take a dose of skepticism back: Grünitz claims that after numerous challenges—namely a real fiasco—the software branch has finally reached a sort of stability level. But let’s be honest, a stability level against Tesla or even Audi? That’s like saying one can compete with a marathon runner by dragging along at a snail's pace.

The battle of ideas

Nothing is simple, especially as competition thickens. Nio, Geely, and other electric ninjas are not here to play cards. They are fighting; or rather, they are dancing a modern dance on the market, taking advantage of every crack in the German strategy. Meanwhile, we just wonder if Volkswagen will settle in as a legend or be buried with the memories of Porsche and MG Motor that once made our hearts race.

Who to trust?

The long-term ambitions of Volkswagen, particularly with the promise of a first electric car based on a new software platform in partnership with the American startup Rivian, seem a bit like trying to catch a train that has already left the station. What about the magic of local development? The promise to deliver a Volkswagen for under 20,000 euros by 2027 swings between dream and reality, especially against the massive portfolio of SAIC Motor.

A glimmer of hope or a touch of madness?

Despite all this, Volkswagen seems to have regained some solidity, like an old lion emerging from its den, shaking off the accumulated dust. Their speeches are still dripping with optimism, but for how long? The admission of concern over Chinese flagship models could either be their salvation or their tomb. One wants to say, we shall see and follow, especially at the launch of their upcoming city cars. But let the financiers get ready: the storm is far from calmed.

Source: www.frandroid.com

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