Volkswagen performed worse than expected in 2024, selling just 9 million vehicles, down 2.3 percent from the previous year. Adding to the concerns is the fact that sales in China also fell, by around 10 percent.
Economx points out that sales of electric batteries are performing better in China, up 8 percent compared to a global decline of 3.4 percent. However, the company has decided to take a cost-cutting step to increase profits amid increasing competition and falling demand in the industry, with plans to lay off tens of thousands of employs announced last autumn.
Sales were hurt by slower-than-expected sales of electric vehicles amid the current economic uncertainty. VW plans to launch 30 more models this year, while orders in Western Europe jumped by about 88 percent year-over-year, driven by some new models.
As reported by Remix News, preliminary data shows the German economy contracted for the second year in a row in 2024, and although Poles are buying more German cars, this has not made up for the losses from China.
Germany has been facing an onslaught of negative economic news, including estimates for a record number of bankruptcies this year and inflation and layoffs hurting consumers.
