Volkswagen factory Emden.
(Image: Volkswagen)
Volkswagen has seen sales figures and therefore the profits of its own brand decline over the past three months. This is mainly due to the disappointing demand for electric cars. However, the brand does make money from a Chinese brand.
It is nothing new that demand for electric cars is declining. At the end of last year, the Wolfsburg brand already scaled back production of the ID.4, even though new ID models followed.
Less profit at Volkswagen and Mercedes-Benz
Volkswagen’s net profit fell by more than a fifth, just like competitor Mercedes-Benz. This is not only due to disappointing sales figures for electric cars. Mercedes says consumers are delaying purchasing a new car as they wait for newer models. Interest rate increases and inflation are also reasons for the disappointing profit.
While Mercedes expects limited growth due to minimal demand for electric cars, Volkswagen hopes to turn the tide by launching many new models on the market this year. Not only under the Volkswagen label itself, but also under sub-brands. For example, the facelifted Cupra Leon and Formentor were released yesterday.
Profit at Chinese brand Xpeng
By the way, a decline in sales of Volkswagen products is not only bad news for Volkswagen. The brand works with Xpeng and has invested heavily in the Chinese car manufacturer (a stake of 650 million euros). Xpeng’s sales figures actually increased by 6 percent in the first three months of this year. Sales of Chinese electric car brands in which Volkswagen has interests account for more than a third of Volkswagen’s total sales figures.
By the way, it is not only German manufacturers that are seeing profits fall. Stellantis also made less profit. In short, exciting times in the automotive world. Tesla boss Elon Musk previously even said that Chinese manufacturers will destroy Western competition if trade barriers are not introduced.
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