Some tidbits, > overnight profit warning triggered in part by the possible closure of an Audi plant and a 3.8% drop in second quarter sales dented by China > Deliveries in China were down by nearly 20% > Audi brand was considering closing its Brussels site, which employs about 3,000 people, due to low demand for its higher-end electric cars > Finding an alternative use for the plant or closing it, as well as other expenses, would cost up to 2.6 billion euros ($2.8 billion) this financial year, Volkswagen announced. > The future of Audi’s Brussels plant was thrown into question earlier this year after the carmaker said the follow-on model to the Q8 e-tron would be built in Mexico. > Volkswagen, which has strong union representation, has not closed a plant in four decades, but analysts said the carmaker was under pressure to reduce significant amounts of excess production capacity. > “Products like the first generation Q8 e-tron were halfway solutions – not the full clean sheet like Audi has done with its new premium electric platform. The potential of the Q6 is higher.” said Stephen Reitman of Bernstein Research.
tdm121
There is a downtrend for non-Chinese automaker. Toyota and Honda are down as well but not as steep as Volkswagen. Nissan, GM, Hyundai are also down. There are just too many automakers in China. Even tesla is not immune to this.
And your done. Like we have been warning you, China is going all EV – whether you want it to or not. 60% of ALL profits from the old ICE OEM’s – comes from China. That is now closer to 0 and will go negative if it has not already – and will get much worse from now on. No more profits, no more growth, cost of gas cars will just keep going up – world wide from now on. Then add to that – more debt that you can no longer pay back – like ever.
Have fun with that!
internalaudit168
Until batteries are proven to last 16 years or battery pack replacements costs are made available, used BEVs will be a hard sell from Year 9 and onward.
Wishing manufacturers start offering extended warranties for first and used BEV owners.
linknewtab
Actually VW BEV sales in China were up significantly:
> Deliveries of all-electric vehicles (BEV) in Q2 at previous year’s level (+0.1%); BEV share rises to 8.1% in Q2 (Q2 2023: 7.7%). Significantly more BEVs delivered in China in the first half of the year (+45%), declining development in Europe (-15%) and the USA (-15%)
>Deliveries in China were down by nearly 20% amid a wider decline in sales of combustion engine cars which still make up the majority of Volkswagen’s line-up in the country.
Looks like its ICE not EV’s that are slowing in sales.
punishGoalhanging
With EVs cheaper than ICE cars in China, EVs will gain more market share at ICE cars expense.
The pace might accelerate as battery price decrease even more.
In countries without domestic car companies, China will just exports their EVs there.
nesa_manijak
New Audis look cheap compared even to the 10 year old VWs. Ain’t a surprise they ain’t doing well
Speculawyer
How about bringing a second VW to the USA?
(Yes, I know the Buzz is coming but it is taking forever and it is not enough. And the ID.6 is pointless to bring here because it is not going to sell well at all.)
11 Comments
Some tidbits,
> overnight profit warning triggered in part by the possible closure of an Audi plant and a 3.8% drop in second quarter sales dented by China
> Deliveries in China were down by nearly 20%
> Audi brand was considering closing its Brussels site, which employs about 3,000 people, due to low demand for its higher-end electric cars
> Finding an alternative use for the plant or closing it, as well as other expenses, would cost up to 2.6 billion euros ($2.8 billion) this financial year, Volkswagen announced.
> The future of Audi’s Brussels plant was thrown into question earlier this year after the carmaker said the follow-on model to the Q8 e-tron would be built in Mexico.
> Volkswagen, which has strong union representation, has not closed a plant in four decades, but analysts said the carmaker was under pressure to reduce significant amounts of excess production capacity.
> “Products like the first generation Q8 e-tron were halfway solutions – not the full clean sheet like Audi has done with its new premium electric platform. The potential of the Q6 is higher.” said Stephen Reitman of Bernstein Research.
There is a downtrend for non-Chinese automaker. Toyota and Honda are down as well but not as steep as Volkswagen. Nissan, GM, Hyundai are also down. There are just too many automakers in China. Even tesla is not immune to this.
Source:
https://www.bloomberg.com/news/newsletters/2024-07-15/byd-s-foes-answer-price-cuts-with-steep-combustion-car-discounts
https://koreajoongangdaily.joins.com/news/2024-01-16/business/industry/Hyundai-sells-Chongqing-plant-for-230-million-amid-slumping-sales/1959860
https://www.asiafinancial.com/nissan-honda-seen-slashing-china-production-by-up-to-30
https://insideevs.com/news/725227/tesla-china-ev-sales-june2024/
Love it. China is kicking ass.
EU tariff make a dent on sale.
And your done. Like we have been warning you, China is going all EV – whether you want it to or not. 60% of ALL profits from the old ICE OEM’s – comes from China. That is now closer to 0 and will go negative if it has not already – and will get much worse from now on. No more profits, no more growth, cost of gas cars will just keep going up – world wide from now on. Then add to that – more debt that you can no longer pay back – like ever.
Have fun with that!
Until batteries are proven to last 16 years or battery pack replacements costs are made available, used BEVs will be a hard sell from Year 9 and onward.
Wishing manufacturers start offering extended warranties for first and used BEV owners.
Actually VW BEV sales in China were up significantly:
> Deliveries of all-electric vehicles (BEV) in Q2 at previous year’s level (+0.1%); BEV share rises to 8.1% in Q2 (Q2 2023: 7.7%). Significantly more BEVs delivered in China in the first half of the year (+45%), declining development in Europe (-15%) and the USA (-15%)
https://www.volkswagen-group.com/en/press-releases/volkswagen-group-deliveries-in-the-first-half-of-the-year-at-previous-years-level-18529
>Deliveries in China were down by nearly 20% amid a wider decline in sales of combustion engine cars which still make up the majority of Volkswagen’s line-up in the country.
Looks like its ICE not EV’s that are slowing in sales.
With EVs cheaper than ICE cars in China, EVs will gain more market share at ICE cars expense.
The pace might accelerate as battery price decrease even more.
In countries without domestic car companies, China will just exports their EVs there.
New Audis look cheap compared even to the 10 year old VWs. Ain’t a surprise they ain’t doing well
How about bringing a second VW to the USA?
(Yes, I know the Buzz is coming but it is taking forever and it is not enough. And the ID.6 is pointless to bring here because it is not going to sell well at all.)