Five of Europe’s largest car manufacturers recently reported a significant decline in profits for the first half of 2024. This drop is attributed to several key factors, including weak demand for electric vehicles (EVs), cost competition from Chinese manufacturers, and rising research and development (R&D) expenses.
Volkswagen Faces Major Challenges
Volkswagen’s CEO, Oliver Blume, highlighted rising costs and lower factory utilisation during a recent earnings conference. Blume stated, “We have made all the necessary technical decisions. We have implemented the relevant organisational measures. Now, our primary focus is on costs, costs, and costs.”