Well, shoot. What happened there?
...It noted that it is also considering the restructuring or potential shutdown of its Audi plant in Brussels, where it employs 3,000 people, on the back of weak demand for the Audi Q8 e-tron line — a fully electric offering from the brand, launched in 2019.
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There were rumors the latest VW move was going to be quite a leap from frying pan into the inextinquishable EV fire...
Cars and trucks are the archetypal examples of industrial hardware. And automotive manufacturing historically has been all about finding ways to efficiently engineer and assemble metal, glass, and plastics into road-going vehicles with consumer appeal. But the big change in locomotion from the internal combustion engine to electric motors has shaken everything up. So when Volkswagen, the world’s highest-earning automaker, announced last month that it was going to invest billions of dollars into a joint venture with the start-up electric-vehicle maker Rivian, it was a dramatic sign of how much automaking has changed over the past decade.
...but it all turned out to be a head fake.
Rivian (RIVN.O), opens new tab on Tuesday said it had no plans to produce vehicles with Volkswagen (VOWG_p.DE), opens new tab after a media report said the U.S. electric vehicle maker was in early talks with the German automaker to extend a recent partnership beyond software.
European carmakers are feeling the dragon's breath on their necks, even as they struggle to cope with the lack of anticipated demand they'd all spooled up for.
German carmakers struggled in China and suffered a drop in vehicle sales in the second quarter, but experienced diverging fortunes in the hotly contested electric-vehicle market.
...Competition in the electric-vehicle market has intensified and car makers have been cutting prices to try and gain market share, particularly as production of new cheaper models from Chinese manufacturers have hit the market and begun to gain traction in Europe.
The European Union recently placed additional tariffs on Chinese-made EVs, following a similar move by the U.S. China has yet to respond and executives at European brands fear an escalating trade war could hurt Europe’s industry long-term.
Mercedes-Benz said overall sales of its cars fell 4% on year in the second quarter, with a slump in customer appetite for battery-electric vehicles in some of its biggest markets.
Mercedes had banked on at least 50% of their vehicle sales being electric by 2025. It is growing ever more obvious that there is no way the company is going to come close to meeting that threshold. Ergo, adjustments are being made to scale back plans already in the works while others are being put on hold.
Mercedes-Benz will wait to see if electric vehicle demand picks up before adding more battery cell capacity, with lower projected EV sales meaning it will no longer need the capacity initially planned for 2030, said Markus Schafer, the group's chief technology officer.
The automaker said in 2022 that it would need more than 200 gigawatt-hours of battery cell capacity by the end of the decade and planned to build eight cell factories worldwide with partners, including four in Europe.
But with EV demand lower than many automakers had forecast, Mercedes said earlier this year it did not expect sales of electrified vehicles, including plug-in hybrids, to reach up to 50 percent of the total until 2030 -- five years later than its previous forecast of 2025.
They remain optimistic for sales going forward. They all do.
Ford is bravely rolling out a new Capri in Europe. Je suis, Capri.