Having looked at the issues besetting the mighty Volkswagen AG (VAG) recently in Part 1 – which can be read here – we can now try and shed some light on the depth of the problems and likely solutions.
Today, the problem is that these cars are all on the verge of being replaced (or have already been replaced, in the Golf VI’s case). The new range taking their place will, even once the glitches related to MQB have been ironed out, not be as lucrative, with profit margins shrinking by as much as two thirds, compared with the Bernhard-era models. This should make future subsidising of models such as the Amarok pick-up (which is said to have a profit margin of -25%) with the Tiguan II’s yields considerably more difficult. Continue reading “Teutonic Displacement: Volkswagen Konzern (Part 2)”