Volkswagen Group has recently been facing a series of challenges, including cost-cutting, layoffs, and plant closures. On November 1, Volkswagen China CEO Ralf Brandstätter stated that this year and next are crucial for the group’s transformation. Despite the difficulties and challenges, he affirmed that they are fully prepared. “We anticipated as early as last year that the aggressive pricing and intense competition in the electric vehicle market would continue, so we decided to prioritize profitability rather than pursuing market share at any cost.” He noted that it is currently very challenging for the company to turn a profit from its electric vehicle business, making it essential to actively optimize costs to ensure the group remains profitable in the face of fierce competition.