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“Quite a difficult year” - Volkswagen is struggling with a sharp drop in sales in China

2022-01-11T08:22:09.589Z


“Quite a difficult year” - Volkswagen is struggling with a sharp drop in sales in China Created: 01/11/2022, 09:13 AM Fights with a heavy headwind: VW China boss Stephan Wöllenstein © Andreas Landwehr / dpa Problems with semiconductors and supply chains have slowed Volkswagen in China. In view of the problems in its most important single market, the alarm bells are ringing in Wolfsburg. Beijin


“Quite a difficult year” - Volkswagen is struggling with a sharp drop in sales in China

Created: 01/11/2022, 09:13 AM

Fights with a heavy headwind: VW China boss Stephan Wöllenstein © Andreas Landwehr / dpa

Problems with semiconductors and supply chains have slowed Volkswagen in China.

In view of the problems in its most important single market, the alarm bells are ringing in Wolfsburg.

Beijing - Sales of the Volkswagen * Group in the world's largest car market, China, slumped by 14 percent last year.

VW China boss Stephan Wöllenstein cited the lack of semiconductors and problems in the supply chains as reasons for journalists in Beijing.

“It was a pretty difficult year.” This year, Volkswagen wants to at least make up for the losses - and also get started with its electric cars from the ID family.

China: VW and Skoda weak, luxury brands are booming

The decline in 2021 mainly affected the volume brands Volkswagen and Skoda, reported Wöllenstein.

The premium brand Audi did less badly with a minus of 3.6 percent compared to the previous year.

Porsche was able to sell 8 percent and Bentley even 43 percent more cars.

The overall market had grown by four percent.

The VW Group's market share in China, which had long been 14 or 15 percent, fell to 11 percent.

"600,000 cars were lost in production," said Wöllenstein, referring to bottlenecks that would have hindered sales.

He mentioned the semiconductor shortage, corona outbreaks and subsequent production stops as well as a fire at a Japanese supplier.

"It's a complex system of restrictions that really changes weekly," said Wöllenstein.

Volkswagen is catching up in China

This year, the group wants to catch up vigorously, as Wöllenstein said.

“The demand is still there.” While the overall market is expected to grow by four percent, Volkswagen intends to grow by 15 or 16 percent.

"We want to regain disproportionately what we have lost above average in the past year," said the VW China boss.

Sales of electric cars from Volkswagen's ID family are also expected to develop positively.

After the target for 2021 of 80,000 to 100,000 had been missed and "a little more than 70,000" had actually been sold, Wöllenstein wants to "at least" double the sales figures this year.

He was certain that Volkswagen would sell every ID car that could be built.

The supply of semiconductors for 160,000 to 200,000 ID cars is assured.

With the transformation to alternative drives, half of the new models that will be launched in China this year will be electric cars.

Here in particular, domestic Chinese manufacturers are strong, which, from Wöllenstein's point of view, will hardly change.

However, by the end of the decade, Volkswagen also wants to be number one in e-mobility in China.

Volkswagen continues to see great potential in China

In his opinion, the prospects for VW's largest single market are “very positive”.

With the growing middle class in China, annual car sales of 28 to 30 million are expected by the end of the decade.

“There is great purchasing power in society,” said Wöllenstein.

“It's us, the industry, that can't deliver.” Last year, 21 million cars were sold in China.

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Volkswagen: The situation remains tense in the short term

There are still factors of uncertainty. "The semiconductor risks are difficult to assess." Wöllenstein was also concerned about the first Omikron outbreak in China in Beijing's neighboring city of Tianjin and possible further lockdowns. The Volkswagen plant in Tianjin has already had to temporarily stop production. Often curfews or production stops come overnight, so supply chains have to be adjusted. But they also passed quickly. "It could be a whole series of minor problems, though."

Because of the strict entry restrictions and the forced quarantine of three weeks in China, it is also difficult to bring foreign specialists into the country.

"A minimum of international experts is still necessary and wanted," said Wöllenstein.

But it is difficult to motivate skilled workers to go to China - especially if they also have children.

“Industry suffers from it.”

(Dpa) * Merkur.de is part of IPPEN.MEDIA.

Source: merkur

All news articles on 2022-01-11

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