Is VW Starting a Fight for the Bottom?

We all know VW is hurting bigtime in Germany. They have already outsourced (sorta) their software to China. (I say sorta because they bought a Chinese software company so I guess it isn’t really an outsource.) Their most profitable business entity was their work in China but that has been dropping. But, now, it sounds like they are close to going the way of MG — not selling out but pumping up their China presence pretty much turning it into their primary business and then exporting back to Europe.

They have announced four models that will be in the $20,000 price range. I’m sure they want to hit that market before Tesla. But, will it work? The Electric Viking talks about what they are doing including their work with Xpeng and Li Auto.

The question is whether then can become a German-owned Chinese car company and gain back sales? My option: No. While they have decades of experience making cars in China I think they are trying this stunt too late. For example, BYD is already exporting to Europe and Latin America and they already have the Dolphin and Seagull. Not “car ideas” but cars that are already in the market selling tends of thousands per month. They may continue to capture the US market (unless BYD decides to enter it) but I think they are too late to became the VW of yesteryear.

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