The German Review

The German Review

What explains Volkswagen's woes?

Germany's largest carmaker is in trouble. The firm's unusual ownership model has played its part.

Jörg Luyken's avatar
Jörg Luyken
Sep 11, 2024
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close up photo of white Volkswagen car
Photo by Mihai Surdu on Unsplash

Dear Reader,

On the one hand, you have Volkswagen. On the other, you have the Social Democrats, Germany’s oldest Volkspartei.

As their names imply, one builds cars for the everyman, and the other crafts politics for him.

But with a touch of nostalgia, I should say "built" and "crafted." Gone are the days when the Social Democrats could claim to speak for the broad masses of Germany's lower and middle classes. These days, the Sozis can barely muster double digits in some state elections.

Volkswagen’s claim to build a people’s car is also based on past glories.

The company that gave us the Beetle and the Golf—cars that almost anyone could afford—has yet to bring an affordable electric vehicle to the market. Its cheapest, the ID.3, currently costs €34,000 - and that's after heavy discounts VW is forced to offer in a price war with Chinese manufacturer BYD.

Even then, Germans just aren’t interested in electric vehicles. Since the government stopped subsidising th…

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