Volkswagen: too little, too late?

Over the last few years I’ve written any number of pieces warning that the traditional automotive industry is running out of road and must stop making cars with petrol and diesel engines, because in addition to being an old and clearly inferior technology, it simply cannot compete with EVs.

Now, Volkswagen, the “people’s car”, and the company responsible for dieselgate, has just . In a further desperate effort to cut costs, VW is to lay off thousands more at plants all over the world.

Why is VW, which last closed a manufacturing plant in 1988, now being forced to make such cutbacks? Because it cannot compete with rivals such as Tesla, Rivian or Polestar, which sell directly to the consumer, thus reducing the considerable margin that goes to the dealer.

Why have dealers become such an important factor? Because companies that only make EVs don’t need them. They can be sold directly over the internet, meaning the company only has to rent a few showrooms in each city. EVs are so low-maintenance, there’s no need for dealers.

EVs are essentially computers on wheels with around 20 moving parts, as opposed to a traditional car, which has around 20,000. An EV…