Volkswagen CEO issues ‘final wake-up call’ amid drastic spending freeze
Warning of tough times ahead, CEO of Volkswagen Passenger Cars, Thomas Schäfer, addressed top VW employees this week, telling them, “This is the final wake-up call.” Schäfer is calling for a short-term spending freeze to get costs under control.
“We are letting the costs run too high in many years,” VW’s leader proclaimed during an online management meeting this week.
Schäfer said he plans to cut spending for the rest of the year as part of a broader company-wide savings plan. Last month, VW announced a new “Accelerate Forward” program designed to drive long-term profitability and performance.
Part of the plans includes doubling VW passenger brand profit margins from around 3% currently to 6.5%.
The core brands leader said after announcing the initiative, “The program is the number one priority for the entire Board of Management.” Through its Accelerate Forward strategy, VW expects to improve earnings by roughly $11.2B (10 billion euros).
The company will focus on higher volume models to streamline production while reducing the number of variants to further optimize efficiency. VW gave an example of its new ID.7 having 99% fewer configuration options compared to a Golf 7 model.
Meanwhile, Volkswagen’s problems go beyond just simply profit margins. Despite all-electric vehicle sales increasing 48% YOY to 321,600 in the first half of the year, EV sales fell in one of its most critical markets, China.
Volkswagen CEO: “This is the final wake up call”
According to quotes by Manager Magazin, VW’s Schäfer said at the management meeting this week:
The roof structure is on fire. This is the final wake-up call.
VW’s final wake-up call comes as the automaker’s dominance over the Chinese auto market is slipping. The Volkswagen Group generates around 40% of its revenue from China, yet EV sales are down 1.5% from the first half of 2022.
More importantly, while new EV registrations are still climbing in other key markets, many of these are older orders from last year or even 2021, in some instances.
According to Handelsblatt, the reason for VWs demand problem is its so-called agency model the automaker implemented with dealers while introducing its ID series.
The move essentially helps save on sales costs but limits the dealer’s ability to raise or lower prices. A VW sales rep said, “The manufacturer cannot sell directly, that becomes clear in times like these,” adding the electric models are “simply too expensive.”
The report claims VW’s high order backlog is still masking the low demand. Earlier this year, CEO of VW Group and Porsche, said he had no plans of joining Tesla in a price war.
However, unlike Tesla, Volkswagen is not generating substantial margins on its electric models. Despite this, the automaker has already caved in China by introducing a limited-time offer on its ID.3 electric car.
Looking ahead, Volkswagen will likely look to introduce cheaper, more basic models with smaller batteries, like the ID2 all concept starting under $27,000 (€25,000) with up to 279 miles (450 km) of range.
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Environment
Tesla says not taking Cybertruck trade-ins after owner tried to return his due to ‘anti-nazi harassment’
Tesla reportedly told a Cybertruck owner that it is currently not taking Cybertruck trade-ins after an owner tried to return his truck due to what he described as “anti-nazi harassment.”
We recently reported that vandals have targeted Tesla locations with anti-nazi and fascist graffiti following Elon Musk’s meddling in politics.
But Tesla owners are also facing a similar situation.
We have recently seen examples of Tesla owners being targeted by similar efforts with people spray painting anti-fascism messages on the vehicles or simply throwing the middle finger at Tesla owners.
Cybertruck owners seem to be getting the brunt of it, probably because it is the most recognizable Tesla vehicle and the latest offered by the company. So, people assume that the owner bought it while knowing of Elon Musk’s latest antics.
Kumait Jaroje, a cosmetic physician based in central Massachusetts, is one of those Cybertruck owners stuck in this situation.
He reported to social media and to local news that he and his family are being harassed because of his gold-wrapped Cybertruck:
“Now, they’re not just waving at me, they’re not just giving me the middle finger. Somebody tried to cut me off while I’m driving with my kids and three guys came out of the car and just pointed the middle finger and started screaming at me.”
More recently, he says that someone placed an anti-nazi sticker on his truck:
After his wife said that she didn’t feel safe driving the truck, Jaroje tried to trade it in to Tesla, but he said that Tesla told him they are not accepting Cybertruck trade-ins:
He confirmed with the text message that Tesla is not accepting Cybertruck trade-ins at this moment.
We previously reported that Tesla is currently overwhelmed with Cybertruck inventory as the truck is having demand issues.
Electrek’s Take
Free speech, right? Not really. You can give the middle finger to all the Cybertruck owners if you want to. It’s a bit childish, but it’s your right. However, your rights end where others begin, and you have no right to put stickers on other people’s property.
Also, cutting people off in traffic is plain dangerous for all road users regardless of what you think of a stupid truck. Interestingly, I had the same thing happen to me when I reviewed the Cybertruck last year, but it was because people where trying to take pictures of the truck.
I understand the hate for Tesla right now. Elon Musk has complete control over the company despite owning only 13%, and he used his wealth from the company to elect Trump and get himself a very strange position within the government where he holds incredible amounts of power with little to no oversight. It’s a scary situation that looks like the beginning of a straight-up oligarchy in the US.
Some Tesla owners are OK with that, some disagree that this is happening, some ignore it, some hate it. You don’t know in which category every Tesla owner finds themselves, and changing a vehicle is a big deal for most people. You can’t expect everyone who disagrees with the situation to be able to change the car.
You can boycott Tesla, but harassing Tesla owners is not OK in my opinion.
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India’s Prime Minister Narendra Modi on Sept. 4, 2024.
Dean Kassim | Afp | Getty Images
Indian Prime Minister Narendra Modi is headed to Washington, D.C., for meetings with President Donald Trump and members of his administration, including Elon Musk, to discuss topics such as efforts to avoid a trade war and artificial intelligence policy, CNBC has confirmed.
In his meetings with President Trump on Thursday, Modi will address the country’s growing trade deficit and present a menu of trade concessions including some tied to agriculture and medical devices, according to sources familiar with the upcoming talks who asked not to be named because they weren’t authorized to speak on the matter.
Modi and his team will also signal India’s intent to buy more liquified natural gas from the U.S., a deal that will likely involve Cheniere Energy. India already buys one-fifth of its LNG from the U.S. and is one of the world’s biggest importers.
A senior official in Modi’s government told CNBC that India is ready to procure more U.S. defense equipment from Stryker, and to find other ways to partner with Washington on military drills in the Indian Ocean, where China remains a lingering threat.
While in Washington, Modi will spend time with Treasury Secretary Scott Bessent and Secretary of State Marco Rubio, as well as Howard Lutnick, Trump’s nominee to run the Commerce Department.
Modi will also have a one-on-one meeting with Musk, who is overseeing the so-called Department of Government Efficiency, with a focus on slashing federal programs and regulations. Modi’s discussion with the world’s richest person is expected to center on AI policy, Starlink’s expansion into India and Tesla’s ability to open up a plant in the country, the government official said.
A White House spokesperson did not respond to CNBC’s request for comment.
On technology, Modi and his team will also reinforce their interest in buying high-performance graphics processing units, or GPUs, from the U.S. and in avoiding any forthcoming export controls from the Trump administration. In a recent trip to Mumbai, Nvidia CEO Jensen Huang expressed interest in partnering with India’s Reliance Industries to further the country’s AI efforts.
It will not be the first meeting between the Indian leader and Musk.
Just before Modi’s state visit to Washington in 2023, Musk met with Modi in New York to discuss slashing electric vehicle import duties in India and other ways Tesla’s expansion into India could become a reality.
Tesla has not publicly shared a plan to build a factory in India, and has instead continued to focus on China. But India has become a big growth market for U.S. tech.
Apple, Meta, Microsoft, Google and Amazon have pledged billions of dollars of investment in India’s growth and to capitalize on the country’s emerging middle class.
According to analysts’ estimates, Apple now manufactures 10% to 15% of its iPhones in India, and CEO Tim Cook has suggested that the company is looking to potentially move more production there. Apple also opened a few retail stores in India in 2023.
For Modi, the trip represents an opportunity for a much-needed boost to his company’s private sector. The MSCI India exchange-traded fund has fallen 5% this year and more than 15% since late September. Meanwhile, Chinese stocks have been rallying as emerging market investors bet on the country’s AI advancements, particularly following recent reports about the power and efficiency of DeepSeek’s model. The iShares MSCI China ETF is up 11% in 2025.
![Jeep's new Recon EV made a surprise Super Bowl cameo [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/02/Jeep-Recon-EV-Super-Bowl.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Jeep’s Wrangler-inspired electric SUV made a surprise appearance during the big game on Sunday. Jeep previewed the Recon EV during a Super Bowl ad, in which it took a shot at Ford. In the commercial, you can see Jeep’s new electric SUV looks ready to challenge the Ford Bronco.
Jeep Recon EV previewed during the Super Bowl
The Recon is the second Jeep electric SUV set to launch in the US. Jeep introduced it in 2022 as part of its plans to become “the leading electrified SUV brand” in North America and Europe.
Built from the ground up with its 4×4 off-road system, Jeep promises the Recon will be its first true off-road electric SUV.
Jeep says the Recon is “inspired by the legendary Wrangler” with optional features like removable doors and windows. Although it’s still built for extreme adventures, the Recon is nearly silent, making that open-air drive even more enjoyable.
Stellantis took the big game as an opportunity, recruiting Harrison Ford to take a shot at its cross-town rival. The Super Bowl ad featured several different Jeep Wrangler 4xe models while the new Recon EV made a surprise appearance.
The Recon looked sleek while off-roading with Jeep’s iconic Punk’n Orange exterior color, a blacked-out roof, and doors removed.
Jeep will launch the Recon EV later this year. With its official debut just around the corner, several models have been spotted in public testing in recent months.
Most recently, the electric SUV was spotted in Michigan with barely any camouflage. The closer it gets to production, the more it looks like a Ford Bronco.
Based on the same STLA Large platform as Jeep’s first electric SUV, the Wagoneer S, the Recon is expected to have a driving range of over 300 miles.
Jeep has yet to reveal prices, but the Recon is expected to start at around $60,000, or slightly less than the Wagoneer S.
What do you think of Jeep’s new electric SUV, the Recon? Would you buy it for around $60,000? Drop us a comment below and let us know your thoughts.
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