In this category there are for example supply chain disruption, rising prices, and now geopolitical situation in Ukraine. When the Western countries put sanctions on Russia, prices of energy and raw materials skyrocketed, which presented a new problem for people as well for companies, because the production cost is now much higher. Volkswagens deliveries in March were 37,3% down if compared to last years numbers. And they are concerned it will fall even more, as tensions are growing also in China, where company has many factories and only China is responsible for 40% of all Volkswagen’s sales. Volkswagen however is still behind with local competitors in electric vehicle sector, as it missed the targeted 80.000 to 100.000 EV sales. Even company itself said that their competitors are no longer Mercedes-Benz and Toyota, but Tesla, Apple, Uber and similar.

Company said that in the following weeks they will announce more information regarding this topic, as well as more detailed plan about how to battle the obstacles.

Volkswagen’s movement in the last five years period. (Source: Trading Economics)

Sources:

https://tradingeconomics.com/vow3:gr

https://lifecarstore.com/volkswagen-focuses-on-areas-to-cut-back-provide-chain-vulnerability/

https://money.usnews.com/investing/news/articles/2022-04-19/volkswagen-focuses-on-regions-to-reduce-supply-chain-vulnerability

https://www.reuters.com/business/autos-transportation/volkswagen-focuses-regions-reduce-supply-chain-vulnerability-2022-04-19/

https://www.investing.com/news/stock-market-news/volkswagen-focuses-on-regions-to-reduce-supply-chain-vulnerability-2806208