Volkswagen, a new threat to Tesla?

Tesla, now the king of electric vehicles, sold more than 936,000 electric vehicles in 2021, according to TradeNews. The company controls 14% of the total global electric vehicle market. But other automakers, such as Volkswagen, are not far behind Tesla. Last year, Volkswagen controlled 11% of the global electric vehicle market, doubling its sales compared to 2020.

Now the company intends to reach the first position in the market of these cars. The first step in this direction is to say goodbye to all combustion and gasoline vehicles. Volkswagen then sells only electric cars. To that end, the company plans to spend $ 7 billion on its development.

In an interview with a representative of the Volkswagen Group with سی‌ان‌ان Volkswagen’s competitors are Subaru, Toyota and Honda, he said. But in the field of electric cars, Tesla is their most important competitor.

Volkswagen Challenges for the American Automobile Industry

According to the representative, one of the problems facing Volkswagen in the United States is that the carmaker was not very popular before and entered the field of long-wheelbase cars later than its counterparts. The cars that Volkswagen was selling were European and had lost the American market.

The next problem was the company’s $ 2.8 billion fine in 2017 for fraudulent testing of gasoline pollutants, which severely reduced Volkswagen’s popularity. He said they have done their best to improve the situation. They have also increased the number of their long chassis from 14% to 70%. These cars increase the popularity of this carmaker.

Problems with battery manufacturing and a shortage of people specializing in this technology in the United States are other obstacles for Volkswagen to capture the electric car market in this country.

Lack of resources in favor of Volkswagen?

Surprisingly, the problems of the global resource chain end in favor of this car company. Earlier, when selling cars, Volkswagen had as many as 100 days to sell. To encourage customers to buy cars, the company had to give customers a 10 to 12 percent discount on car prices. This lowers the value of cars. But now, due to supply chain problems, Volkswagen has a car for less than 10 days, and this makes it not a discount to the customer, and ultimately ends up in the company’s favor.

Volkswagen changes

Volkswagen used to sell only German cars, but now it produces cars in its own factories and is an independent automaker. 92% of the cars sold by the Volkswagen Group in the United States are manufactured in the brand’s factories in Mexico and Tennessee. Eighty-five percent of raw materials are also purchased from US suppliers. This eliminates many logistical problems for the company.