Volkswagen's plans to cut costs by €10 billion were announced at their Wolfsburg headquarters. Despite initially having ambitious goals to overtake Tesla as the world's leading manufacturer of electric vehicles, Volkswagen has fallen behind in the EV race. They are selling less than half the number of electric vehicles compared to Tesla and are facing competition from Chinese automakers in their biggest market, China. Volkswagen's stock price surged in 2021 but lost gains in 2022 due to the company's failure to meet expectations. The CEO of Volkswagen passenger cars admitted that the brand is no longer competitive due to high costs and low productivity. The company is now working on cost-cutting measures to boost efficiency. The "Dieselgate" scandal in 2015, where Volkswagen admitted to cheating emissions tests, has also impacted their confidence and ability to move quickly in the EV market. Despite being the largest seller of EVs in Europe, Volkswagen is still considered a slow-moving company compared to newer competitors. UBS downgraded its recommendation on Volkswagen stock due to the threat from Chinese competitors. Volkswagen's existing combustion-engine business still dominates the majority of their sales and profit, making the transition to electric vehicles more challenging.
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