German Car Giants Struggle with Declining Electric Vehicle Sales: Job Cuts, Reduced Production Shifts and Shift towards Combustion Engines

Despite their success in selling electric cars, German manufacturers VW and Porsche are struggling with declining sales of battery-powered vehicles. This has led to job cuts and reduced production shifts at VW’s Zwickau plant, while Porsche is also considering similar measures for its Taycan model.

The decline in electric car sales can be attributed to a number of factors, including political decisions that have reduced the incentives for buyers to purchase them, as well as competition from cheaper electric vehicles from Chinese manufacturers. Despite selling a record number of electric cars last year, VW’s battery-powered vehicles accounted for only a small percentage of total sales. This has forced the company to rely on combustion engine models to generate profits.

Mercedes-Benz and BMW are among the other German manufacturers shifting their focus back to combustion engines, acknowledging the challenges in the electric car market. They are investing more in combustion engine development and production, while maintaining a balanced approach to both electric and combustion engine technologies.

VW is looking for government support to overcome the crisis in the industry and has called on the government to resume subsidy programs that promote electric vehicle sales. However, some experts predict that the shift towards combustion engines may not be sustainable in the long run as demand for electric vehicles continues to grow worldwide.

The crisis in the industry is forcing strategic shifts in boardrooms across Germany, with some reevaluating their goals for electrification while others maintain a balanced approach to both electric and combustion engine technologies. The future of electromobility remains uncertain as companies struggle to navigate this turbulent period but with right strategies and support they may be able to overcome it