Big trouble at VW?

[Citygone]

https://electrek.co/2025/10/23/as-11-billion-cash-shortfall-looms-we-ask-is-volkswagen-cooked/

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[COdogman]

Wouldn't surprise me if it's true. But they could also close that gap or come close by selling off a couple luxury brands...then the challenge would be not repeating the same mistakes.

 

[BigSkies]

I browsed the VW financials and don't see what the author is talking about. I'm not as up-to-date on European financial reporting as US based, but VW looks profitable with positive operating cash flow.

Maybe they've committed to more investments & capex than they can swallow? That's a pretty solvable problem if so.

I do question their continued investment in Scout. That's a multi-billion capital hole for another high-priced offroad EV that won't sell in enough volume to offset development costs. They'd get better value for their money by just buying Rivian at this point.

 

[3wisemonkeyz]

This is why I’m doubtful Scout will actually launch.

 

[Great Gatsby]

So EVs doomed Volkswagen, so therefore no other company can do EVs because they were never meant to be, so EVs will die out soon and we can go back to putting gasoline in our vehicles?

$11B is a lot of money, but VW is worth a lot more than that. These nothing burger, short-sighted headlines are getting annoying. I don't foresee VW closing shop anytime soon.

 

[mkhuffman]

So EVs doomed Volkswagen, so therefore no other company can do EVs because they were never meant to be, so EVs will die out soon and we can go back to putting gasoline in our vehicles?

$11B is a lot of money, but VW is worth a lot more than that. These nothing burger, short-sighted headlines are getting annoying. I don't foresee VW closing shop anytime soon.

I love my battery powered lawn mower. (And my battery powered truck.) I love never needing to change the oil or even go to a gas station. Love it. The annual bullcrap with my mower is over. The last-minute run out to the gas station so I can mow will never happen again. Battery power is so much better than gas power. So much better. IMO, of course.

 

[Great Gatsby]

I love my battery powered lawn mower. (And my battery powered truck.) I love never needing to change the oil or even go to a gas station. Love it. The annual bullcrap with my mower is over. The last-minute run out to the gas station so I can mow will never happen again. Battery power is so much better than gas power. So much better. IMO, of course.

There is a world where ICE and EVs can coexist. They each have their benefits, and people are allowed to have preferences. I was more poking fun at the desire of some people/industries to see EVs die off and jumping at every opportunity to forecast a potential downfall of another EV automaker or blame a legacy automakers troubles on EVs.

I personally cannot wait to get rid of my BMW and go fully electric in my household. I'd probably lose a lot of interest in driving if I had to sell my EVs and go full ICE again. I think we are way past the point of that being concern, but headlines persist about some impending doom coming for the industry.

 

[MountainBikeDude]

I browsed the VW financials and don't see what the author is talking about. I'm not as up-to-date on European financial reporting as US based, but VW looks profitable with positive operating cash flow.

Maybe they've committed to more investments & capex than they can swallow? That's a pretty solvable problem if so.

I do question their continued investment in Scout. That's a multi-billion capital hole for another high-priced offroad EV that won't sell in enough volume to offset development costs. They'd get better value for their money by just buying Rivian at this point.

Somewhat in support of your comment within the article

To others comment on Scout continuing to be viable at this point. Considering the current trend away from EV's due to your current administrations standing, there would be less prejudice for the Harvester equipped Scout models which may appeal to those onboard with the current policy reversals.

 

[mkg3]

There is a world where ICE and EVs can coexist. They each have their benefits...

Very true. In another 10~15 years, I believe EV will be the dominant automobiles. ICE vehicles will exists but as a luxury item. EVs will be so much cheaper and cheaper to operate than ICE.

As for the VW story, they are cash positive. It's just that their earnings and margin has fallen over 90% (I am a shareholder of VWG). They were profitable thanks to Lambo and Bentley. Lost most money at Porsche. As such, Oliver Blume is no longer the Porsche CEO. They've hired Michael Leiter - extremely capable auto exec to right the ship. Oliver is still the CEO of VWG. He is on a short leash though...

As for the article, its Electrek so all they do is sensationalize for click bate.

 

[mkg3]

...I do question their continued investment in Scout. That's a multi-billion capital hole for another high-priced offroad EV that won't sell in enough volume to offset development costs. They'd get better value for their money by just buying Rivian at this point.

The South Carolina plant they are building will also build Audi (and possibly Porsche Macan) SUVs and are in discussion to be customer spec build facility (e.g., Magna Styer for those that do not want to build a factory in US to avoid tariff due to smaller numbers) in addition to Scout vehicles based on what I've read on several auto industry publications (e.g., Automotive News)

 

[kurtlikevonnegut]

Very true. In another 10~15 years, I believe EV will be the dominant automobiles. ICE vehicles will exists but as a luxury item. EVs will be so much cheaper and cheaper to operate than ICE.

I agree with the idea but I think it'll be more like 25-30 years before ICE is a novelty item.

 

[mkg3]

...What I have heard is that the Nissan is in deep, and the Honda merger may not save the brand. Daimler Chrysler is not much better, but Mercedes does have a new motor that is ridiculous and could be a game-changer in aviation or EVs.

I think you're bit out of date there...

Nissan and Honda have called off merger or collaboration over 6 months ago and there is no Daimer-Chrysler. MBB bought Chrysler for then $36B and sold it off to Fiat for then $5B (you know, buy high, sell low...) to make Fiat-Chrysler. They then merged with PSA (Peugeot-Citroen and Opel) and became Stallantis.

As for the new ridiculous motor by Mercedes, they acquired Oxford startup called YASA Ltd., that makes axial flux electric motor. YASA stands for Yokeless And Segmented Armature and they just broke the world record for power density by producing over 1000HP from 45kg motor. Their current axial flux motors are being used in Ferrari 296 and McLaren Artura. Both in the 8 speed double clutch transmission to aide fill the turbo lag. AMG is implementing the YASA motor for the future GT line.

 

[Motoarzon]

Volkswagen is the most indebted company on the planet at around $212 "Billion". They sell a whole bunch of gas & diesel vehicles at "high margin". EV's require a whole lot of R&D and transition to a new supply chain and will be "low margin" for many many years to come while things switch over and they achieve economies of scale.
That transition is going to be tough and I see potential bankruptcy in the future. The gas pie is declining and going close to zero. The EV pie is growing and going close to 100% over the next 10-15yrs. For every low margin EV they sell it "Cannibalizes" a high margin gas/diesel vehicle they would have otherwise sold instead.
Currently they are a leader is gas/diesel. which is dying. They are not a leader, not even close, in EV's which are growing.

 

[Greg Chick]

So EVs doomed Volkswagen, so therefore no other company can do EVs because they were never meant to be, so EVs will die out soon and we can go back to putting gasoline in our vehicles?

$11B is a lot of money, but VW is worth a lot more than that. These nothing burger, short-sighted headlines are getting annoying. I don't foresee VW closing shop anytime soon.

When I can buy an oil rig/oil refinery and gas tank with a pump, I will support gas vehicles.
I harvest solar power from my roof, charge my R1T, no fuel bills.

 

[savethemanual]

https://finance.yahoo.com/news/volkswagen-posts-1-billion-euro-074730395.html

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