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Volkswagen Struggles to Keep Pace in Electric Vehicle Race as Rivals Gain Ground in China

  • Volkswagen is losing the electric vehicle race in China to BYD, Nio, and other local brands who offer cheaper, better EVs.

  • Tesla has continued expanding and leads in automotive innovation, undermining VW's Audi brand.

  • VW struggles to adapt due to its complexity, slow pace of change, and challenging internal dynamics.

  • VW's new CEO Oliver Blume is expanding partnerships in China and trying to fix software unit Cariad to catch up.

  • VW has deep pockets to fight back but faces intense pressure as China and Tesla threaten its dominance.

yahoo.com
Relevant topic timeline:
- Major automakers have largely shunned India when it comes to investing in electric vehicle (EV) assembly plants and battery gigafactories. - However, some leading industry players, including Tesla, Byd, Fisker Motors, Nissan, and Renault, have shown interest in manufacturing EVs and batteries in India. - India has become the world's third-largest auto market and surpassed China as the most populous nation. - The Indian government recently blocked Byd's proposal, potentially due to geopolitical tensions between India and China. - Tesla CEO Elon Musk has expressed optimism about India's EV potential, stating that it has "more promise than any large country in the world."
- China currently dominates the electric vehicle, battery, and critical metals industries. - However, other countries, such as Australia, India, and the US, have started pushing back against Chinese investment in these industries. - There is suspicion and concern about Chinese EV companies in countries like France, which is calling for an investigation into unfair subsidies by the Chinese government. - This could potentially lead to new tariffs on Chinese EV imports to the EU. - China's recent actions, such as threatening to curb exports of important materials and banning coal imports from Australia, have further fueled concerns about dependence on China.
The article discusses the potential for the West to use China's economic slowdown to gain an advantage in the electric car race, highlighting the need for a different approach to counter China's advantage. The author suggests welcoming Chinese investment and immigration of skilled Chinese scientists to strengthen the American EV industry and potentially weaken China.
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