Volkswagen is abandoning popular cars and focusing on premium models

With an expressive share in the global market, the Volkswagen It is a leader in many aspects of the industry. In Brazil, for example, where Completed 69 years of productionThe brand was the first to introduce flex-fuel engines. However, now, the German, known for making popular cars, will reduce the combustion models to focus on premium cars.

The information was confirmed this week by Volkswagen’s chief financial officer, Arno Antlitz. According to him, the goal is to reduce the line of gasoline and diesel cars – part of about 100 models of various brands of the group – by 60% by the end of this decade. This is in Europe. “The main goal is not growth. We are (more focused) on quality and margins, not on volume and market share,” emphasized the CEO of financial times.

The newspaper also reported that the new strategy signifies a major change in the auto industry. After all, the sector is trying to outdo itself every year in license plates, but it has faced some difficulties, especially with regard to the global shortage of chips due to the Covid-19 pandemic.

Its presence in the market

In search of expansion, Volkswagen aims to become the largest auto seller in the world by 2018, outperforming other brands such as Toyota and General Motors. For this, the group has maintained a strong presence in markets such as North and South America, with several launches. After that, a shortage of semiconductors forced brands to stop production, even as demand increased.

In the meantime, like automakers Mercedes-Benz and BMW Their profits doubled in 2021 due to higher car prices despite selling in smaller quantities. This was a plan similar to that of Volkswagen, which prioritized the most expensive cars among the brands Audi and Porsche – It is part of the group – and scored more than 20 million euros in that period. Also according to the report, the executives of the three brands emphasized that this trend will continue even after the supply issues are resolved.

and electricity?

In total, the English website states that Volkswagen’s investment in electric cars is already around 52 billion euros. In other words, one of the largest companies to date. Much of the value has been invested in plants in Zwickau and Emden, Germany, with production lines switching to electric cars. “We are not increasing production capacity, but reworking plant by plant,” said the German group’s chief financial officer.

On the other hand, Arno Antlets said that betting on the electric range can be very profitable. However, there is concern due to the high cost of raw materials for batteries. “Hopefully it’s war [na Ucrânia] It will end soon and then the raw material prices will drop a little bit more,” and finally, he said that the new battery technology will drive prices lower in the long run.

*With information from the Financial Times.