Automakers Don't Understand Their Customers
Volkswagen faces significant challenges in the EV market, notably with its luxury brand Audi, due to a sharp drop in demand for high-end electric vehicles. The potential closure of Audi's Brussels site underscores structural challenges and high logistics costs. Volkswagen has lowered its operating return forecast from 7-7.5% to 6.5-7%, affecting parent company Porsche SE's earnings as well. Despite the current financial strain, including unplanned expenses and exchange rate losses, the promise of EVs remains with benefits like lower maintenance costs and environmental sustainability. Can Volkswagen and the broader automotive industry navigate these obstacles to achieve widespread EV adoption or simply just provide what customers need?
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