VW teeters on disaster. Germany’s socialists, greens propose solving the problem that they themselves have caused.
AI generated image.
By Klimanachrichten here.
(Translated/edited by P. Gosselin)
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The bad news about Volkswagen never ends, but neither do the clever tips from politicians. The strangest things come to light. Lower Saxony’s Economics Minister, of the SPD socialists, Mr. Olaf Lies, (the state has a 12% stake in VW) had no idea about the events and problems at the manufacturer until the press release.
He was not on the supervisory board. The state’s Minister of Economic Affairs once sat on the board, but he was replaced by a Green Minister of Culture. Not for reasons of competence, but rather because she is a member of the Green Party and Lower Saxony Vice Prime Minister. Do they talk to each other? Hard to say.
So Mr. Lies was caught unprepared and also stated in the media that energy prices in Germany were causing Volkswagen problems. It’s hard to imagine what would have happened if the country had allowed the two nuclear power plants there to continue operating, though this is a federal decision. It is also somewhat crazy that energy prices are rising due to the green energies transition and grid restructuring. A self-fulfilling prophecy, except for Mr. Lies, who proposes solving the problem with new subsidies.
So the consumer is failing, and is buying too few electric cars, for whatever reason. The slump in registration figures is not only affecting Volkswagen, but are also falling for combustion cars, which says a lot about the economic situation in Germany. According to the Federal Motor Transport Authority, the number of registrations fell by 28% compared to the same month last year. The number of e-car registrations even fell by almost 70%. Yet Volkswagen has been told quite clearly that there is only one way forward and that is e-mobility.
Surprisingly, the plants that still produce combustion cars are doing very well.
We are increasingly reading that the current Federal Minister of Economics, Robert Habeck (Greens Party), stated back in 2019 that VW would only survive if it produced an e-car model for under 20,000 euros. The biggest proportionate cost factor for an e-car is likely to be the car’s battery. In a small car, it has a greater impact on the price than in a mid-range car. The battery can account for between 30-40% of a vehicle’s price. If even a small car like a Fiat 500 in the e-version is 30% more expensive than the combustion version, then the dilemma becomes clear. Battery prices will only fall with mass production and manufacturers are still a long way from achieving this. So it’s the chicken and egg problem. The manufacturer Volvo, which has Chinese owners, has put aside its plans for 100% electric by 2030, according to T-Online.
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When politics enters the company board room, it is the end of the enterprise. This is the result of a well known law: Whatever the Red/Green
blob touches, it whithers and then dies. With the best of intentions of course…..
in the first 6 months of 2024 compared to 2025 the total number of new immatriculated vehicles in Germany is almost constant (around 1,910,000 units), but in 2023 355,000 BEV were immatriculated while in 2024 241,900 vehicles (-31%).
In particular the august data reports -68,8% compared to August 2023.
That said, in Germany (and in Italy) there are simply too many cars and streets and main roads are overfilled leading often to long and slow queues.
So the truth is that we need less cars instead of new type of cars.
We need goods to be locally produced instead of being transported by truck from one corner of Europe to the other.
In the 80es people lived much better and there were only 29mln cars in Itlay (today are over 40mln).
Germany has the most expensive electricity in Europe. That doesn’t help.
Fiat have halted production of the battery 500 due to lack of sales.
VW had two coal power plants for its own use. These were converted to gas, not looking good.
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