Thread by @HiddenValueGems

Is #VW $VOW.DE a value trap?

Cc @StefanHesse68

Some interesting points by @FT

1 | VW has been too slow in developing software.

2 | it is losing mkt share in China which is becoming more electric. ~ 50% of VW profits come from China

Some quotes 📝👇

3 | “Decisions over design and engineering problems get stalled between Wolfsburg and the group’s numerous Chinese offices and factories. VW cars are developed in Germany for European customers before models are tweaked to become China-made for Chinese consumers.”

4 | “As it tried to pivot to electric models, VW remained “highly dependent” on major suppliers who made parts for internal combustion engines, the former executive said. This meant that it had fallen behind not only Chinese rivals but also Tesla, which was becoming deeply… twitter.com/i/web/status/1…

5 | “Volkswagen is a giant of fuel vehicles . . . It is like asking an elephant to turn around,” the former executive said.

6 | “They can offer beautiful cars also with an electric battery, that is no problem at all, but the software is just so outdated, it is just embarrassing,” he said.
“Maybe for Europe it is good enough for a few more years. For China very quickly that will run into a dead end.”

7 | “If they cannot solve that they will have a ‘hole’ in new product launches for maybe one or two years — that can really kill a company,” the former executive said.

Full article

Can Volkswagen win back China? on.ft.com/41cofNX