The events of Ukrainian history have increased electricity prices in Europe many times over. The German car industry immediately realized what a disaster this was threatening for it in the near future and frantically looked for ways to survive in competition with manufacturers from the United States and China. The Americans immediately felt they benefited from the situation and quickly passed a law that creates powerful economic preferences for all industrialists who decide to move to the North American continent.
In the hope that the inflow of foreign industrial capital will become a life-giving doping for the US economy’s spitting inflation and recession. And it seems that “the process went” like clockwork. But then it turned out that not everyone is ready to “blame” without looking back from the not very spicy old woman of Europe to the equally problematic states.
Among such pragmatists, as expected, was the Volkswagen concern. This was especially evident at the international auto show in Shanghai, China. In that context, the chairman of the board of directors of Volkswagen AG, Oliver Blume, gave a wonderful interview to the press. In it, he said in particular that the group was implementing its strategy “In China for China” with might and main.
That is, in fact, he is striving with all his might to become a non-foreign manufacturer there, having a real “in his plate”, local. There are 20 electric vehicles at the VW exhibition in Shanghai. And by 2030, 30 pure electric models from the German concern will be offered to Chinese customers who, thanks to generous government programs to support demand for electric trains, have tried this type of transport.
— We have a strong position in the combustion engine market. And we want to keep them for years to come, part of the strong growth curve of electromobility, Blum said.
Agree that this somehow does not fit with European and American trends for the almost complete suffocation of cars with internal combustion engines. If Blum tried to say the same words about the internal combustion engine, for example at the Frankfurt Motor Show, the demonic “greens” would immediately mix it with manure. And in China, where eco-madness hasn’t really taken root yet, it’s quite possible to express healthy thoughts.
But the main thing, nevertheless, is not about ecology, but about money. Blum also provided information for reflection on this topic:
“Over the next five years, we will invest around 180 billion euros, the majority of which will go to electromobility, digitization and communication. Products in the Chinese market will benefit from this investment,” he said.
In other words, “we pump money into local projects.” Now compare this scale to the size of VW’s investment in the US: the company has begun building a battery factory in Canada and plans to build another in South Carolina, US. The total budget of both projects does not exceed $ 5 billion. And the lion’s share of the 180 billion euros goes to Asia, not North America.
This suggests that Volkswagen AG is betting globally on China and its largest car market in the world. Keep actively growing towards the same. Of course, the US is also important to VW. But not that much. And the economic crisis that America is inevitably approaching does not at all add to the attractiveness of the idea of relocating completely to the homeland of the dollar …
The events of Ukrainian history have increased electricity prices in Europe many times over. The German car industry immediately realized what a disaster this was threatening for it in the near future and frantically looked for ways to survive in competition with manufacturers from the United States and China. The Americans immediately felt they benefited from the situation and quickly passed a law that creates powerful economic preferences for all industrialists who decide to move to the North American continent.
In the hope that the inflow of foreign industrial capital will become a life-giving doping for the US economy’s spitting inflation and recession. And it seems that “the process went” like clockwork. But then it turned out that not everyone is ready to “blame” without looking back from the not very spicy old woman of Europe to the equally problematic states.
Among such pragmatists, as expected, was the Volkswagen concern. This was especially evident at the international auto show in Shanghai, China. In that context, the chairman of the board of directors of Volkswagen AG, Oliver Blume, gave a wonderful interview to the press. In it, he said in particular that the group was implementing its strategy “In China for China” with might and main.
That is, in fact, he is striving with all his might to become a non-foreign manufacturer there, having a real “in his plate”, local. There are 20 electric vehicles at the VW exhibition in Shanghai. And by 2030, 30 pure electric models from the German concern will be offered to Chinese customers who, thanks to generous government programs to support demand for electric trains, have tried this type of transport.
— We have a strong position in the combustion engine market. And we want to keep them for years to come, part of the strong growth curve of electromobility, Blum said.
Agree that this somehow does not fit with European and American trends for the almost complete suffocation of cars with internal combustion engines. If Blum tried to say the same words about the internal combustion engine, for example at the Frankfurt Motor Show, the demonic “greens” would immediately mix it with manure. And in China, where eco-madness hasn’t really taken root yet, it’s quite possible to express healthy thoughts.
But the main thing, nevertheless, is not about ecology, but about money. Blum also provided information for reflection on this topic:
“Over the next five years, we will invest around 180 billion euros, the majority of which will go to electromobility, digitization and communication. Products in the Chinese market will benefit from this investment,” he said.
In other words, “we pump money into local projects.” Now compare this scale to the size of VW’s investment in the US: the company has begun building a battery plant in Canada and plans to build another in South Carolina, US. The total budget of both projects does not exceed $ 5 billion. And the lion’s share of the 180 billion euros goes to Asia, not North America.
This suggests that Volkswagen AG is betting globally on China and its largest car market in the world. Keep actively growing towards the same. Of course, the US is also important to VW. But not that much. And the economic crisis that America is inevitably approaching does not at all add to the attractiveness of the idea of relocating completely to the homeland of the dollar …
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.