After reading more about the internal combustion engine recently, I found that I was about to "fine". On the one hand, the internal combustion engine is the main profit cow of the major traditional manufacturers, but under the trend of electrification, everyone seems to be afraid of the internal combustion engine. No, Volkswagen recently announced that it will abandon dozens of internal combustion engine models by 2030. In combination, the Volkswagen Group will reduce its lineup by 60% in its gasoline and diesel models in Europe. Is the Volkswagen Group determined to draw a line with the internal combustion engine? And in these 7 years, what models are expected to be "cut"?
"Volkswagen" may go to the high end
To answer the first question, is the Volkswagen Group trying to draw a line with the internal combustion engine? No, it's just about drawing a line with models of internal combustion engines that don't make money. It is clear that in the process of "aircraft carrier turn", volkswagen group prioritizes abandoning the burden of high input and low output, but in the current era background, most of these models use traditional internal combustion engine power.
In the context of the decline in sales in 2021, but the sharp rise in profits, it seems that the Volkswagen Group is no longer entangled in the "world's first sales" dispute with Toyota for many years, and the competition for profits is a more important issue. As a result, Volkswagen, which was once known for its cost performance, may retain the price of the product line that will no longer be so "close to the people".
Before speculating on the specific discontinued models, the first thing to be clear is that the status of diesel vehicles in the Volkswagen group system will decline rapidly. In fact, this is the result of European consumers "voting with their feet" after the "emission gate" incident. In the past, diesel was promoted by many European car companies, mainly Volkswagen, as a "clean, energy-saving, efficient" high-quality automotive fuel. Since the 1980s, Europe has also been the world's largest market for diesel vehicles. However, after the "emission gate", diesel power has fallen out of favor, and it is expected that the Volkswagen Group will further cut diesel-powered models.
On the question of which models will be cut specifically, we can refer to Audi's statement at the beginning of the year. As early as February, Audi CEO Marcus Dusman said that product lines including Audi A1 and Q2 will be officially discontinued after the end of the product cycle. Volkswagen itself may adopt a similar approach, such as the end of a generation of classic Beetles. Extrapolating down, such as volkswagen Polo, even golf and Jetta (overseas version) position is not stable. It is worth mentioning that the vitality of golf in the European market is not bad, but it does not mean that its derivative models can also pass the level smoothly. Jetta (overseas version) is more dependent on the performance of the North American market.
In addition, expensive models do not mean to sit back and relax. Looking at the Volkswagen Group, Porsche, Audi, etc., which are expensive and "not worried about selling", are obviously more worthy of reliance than the high-end models of the Volkswagen brand. Specifically, Sharon's life cycle may come to an end, and this MPV has no signs of a successor. The Passat's position should be solid, but CC appears to be being replaced by the Arteon series. The fate of Touareg is also better than that of Phaeton at that time, and the current third-generation Touareg product power is still very online.
The Russian-Ukrainian conflict, sending the public out, sending Skoda downstairs
Good steel is used on the blade, but the reality of the automotive industry in recent years is that the giant of the traditional car company has turned around, and the blade is too long (too many places to use money). However, the supply chain is frequently out of the situation, and the so-called "good steel" is becoming less and less. The outbreak of the Russian-Ukrainian conflict is undoubtedly worse for the Volkswagen bloc located in Europe. After the outbreak of the conflict, Volkswagen Group, Volkswagen, Skoda, Audi, Porsche and other brands were forced to reduce production. The Volkswagen Group is even interested in moving its supply chains to North Africa, Eastern Europe, and even China and Mexico.
However, the resource exports of Russia and Ukraine may be difficult to alleviate in a short period of time. For example, Ukraine's neon gas accounts for more than half of the global market supply, and the sanctions against Russia have not only pushed up energy prices in Europe, but also sent the price of metals including aluminum, nickel, palladium, platinum and other metals to the roller coaster.
In addition to the supply chain and the export of resources, the Russian-Ukrainian conflict also affected the sales market of the Volkswagen Group. Russia itself is one of the world's top ten car consumers, with total sales of about 1.67 million units last year, an increase of about 4% year-on-year. Both the total amount and the growth rate have surpassed the French and British markets. Ukraine is also a populous European country with a population of more than 40 million. Specifically, Volkswagen Polo and Skoda Rapid (domestic Xinrui) under the Volkswagen Group were among the top ten models sold in Russia last year. Moreover, the growth rate of Skoda in the Russian market is quite good, with a total delivery volume of more than 90,000 vehicles last year, and the Eastern European market, including Ukraine, has also been a stable "back garden" for Škoda.
The reality, however, is that Volkswagen's plants in Kaluga and Nizhny Lomogorod have ceased production and stopped exporting cars to Russia. Skoda also has factories in both regions, producing models such as Rapid (Domestic Octavia), Karoq (Domestic Kolok) and Kodiaq (Domestic Kodiaq). After the conflict, ŠKODA's factory in Russia was still functioning, but it was constantly evaluating the next developments. More importantly for Škoda, the impact of the current conflict on supply chains in Eastern Europe, as well as the depreciation of the Russian currency, has led to a sharp decline in profits from vehicle sales locally.
Written in the end: the subjective willingness to "make money" and the continuous pressure of the objective supply chain, volkswagen and the entire group's attitude towards low-profit models can be imagined. Actively stopping some fuel models may cause the Volkswagen Group to be unable to compete with the Toyota Group in a short period of time. But this does not mean that Volkswagen is eager to draw a clear line with the internal combustion engine, and it does not mean that it has conceded defeat. On the contrary, the Volkswagen Group has begun to advance to the next chess game with great determination. As for the classic model that may be sacrificed this time, it will be "reborn" at the right time, which is also a bridge section that we are not surprised.