US Car Companies Face Volkswagen OnslaughtJune 22, 2022
Presumably, Ford and General Motors need to create a large lineup of electric vehicles (EVs) to take on Tesla. However, Tesla may not be their primary competitor in a year or so. Volkswagen could end up as the global EV leader, edging ahead of Tesla and the balance of the industry.
InsideEVs recently reported that Volkswagen sold 310,000 EVs in Europe last year, compared to Tesla’s 170,000. Given how broad Volkswagen’s presence is in Europe, that spread likely has improved in the German automaker’s favor.
However, Volkswagen has not had a major sales footprint in the United States. If, however, it can get to market with a broad array of EVs ahead of American car companies, that could change.
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Volkswagen’s financial arsenal is such that it can match, if not top, GM and Ford for capital costs to build EVs. It faces the same microchip shortage as the others, so none may be able to have explosive sales for months.
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According to InsideEVs, Bloomberg Intelligence believes Volkswagen will end up at the top of the EV pyramid. If that is true, the investments GM and Ford have made will net modest returns at best.
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