The Volkswagen Group has been facing a series of challenges in the automotive industry, including layoffs, factory closures, and declining sales. Despite its efforts to transition to electric vehicles and partner with new companies in America and China, the company had a tough 2024 and the outlook for 2025 doesn’t seem much better.
Volkswagen, once a leader in the race towards electric vehicles, has struggled to meet its goals of transitioning away from internal combustion engines. The company has faced obstacles such as high battery and labor costs, software challenges, and delays in launching new electric models.
In 2025, Volkswagen has no new EV launches planned, with key products like the ID.7 sedan and ID.2 subcompact facing delays. The company is lagging behind competitors in China, where affordable electric and hybrid models are dominating the market. In the US, Volkswagen’s lack of hybrid options is also impacting its sales.
The core Volkswagen brand is particularly struggling in Europe, where new competitors from China are undercutting its offerings. The company’s bet on fully electric vehicles has not played out as planned, with sales stagnating in Europe and declining in the US.
In the face of these challenges, Volkswagen is looking to lower costs and address software issues to improve the competitiveness of its electric vehicles. The company is also planning to introduce new hybrid models in the US market, but the timeline for their release remains uncertain.
Meanwhile, the auto industry is preparing for the return of Donald Trump to office, with potential changes to policies affecting electric vehicles and tariffs on Mexican-made cars. The impact of these changes on the industry remains to be seen.
Additionally, Ford’s BlueCruise automated driving assistance system is under scrutiny following fatal accidents involving vehicles equipped with the technology. The National Highway Traffic Safety Administration is upgrading its probe to an engineering analysis to determine if a recall is necessary.
As the automotive industry navigates these challenges and changes, it remains to be seen how companies like Volkswagen and Ford will adapt and innovate to meet the demands of the evolving market. The future of electric vehicles and automated driving technologies hangs in the balance as the industry faces a period of transition and uncertainty.