Volkswagen's recent earnings cut reflects a troubling trend: declining passenger car sales globally, exacerbated by competition in China and rising vehicle prices affecting demand.
In a stark shift, foreign automotive companies now only hold 33% of the Chinese market, down from 53% two years ago, with local manufacturer BYD now leading.
The rising average cost of a new car in the U.S. – now $48,000 – has been driving customers away, impacting sales for VW, GM, and Ford alike.
Labor costs pose a significant challenge for VW, with potential plant closures looming in Germany, highlighting the financial strain of maintaining a full workforce amidst falling sales.
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