Volkswagen is going through a rather dark chapter in its history. What was once one of the best-selling car brands in the world now faces an ironic situation: in 2024, it sold more sausages than cars. As you read, this is no joke. You know that saying about having a “plan B” in case your business doesn’t work out? Well, Volkswagen has taken it very seriously. While the company delivered 5.2 million vehicles worldwide, its food division reached a record 8.5 million sausages sold. This may seem like a curious statistic, but it actually reflects a serious problem. The company is seeing its car sales decline in key markets like China and Europe, while competition with Chinese manufacturers like BYD is becoming increasingly fierce. Is this the end of an era?
Volkswagen’s plummet
Volkswagen’s problems didn’t start overnight, nor did they happen yesterday. The company has been facing several obstacles that have affected its financial results, and its 2024 annual results have been more than worrying. The company reported a 30.4% drop in net profit… And all this is happening while BYD and other Chinese manufacturers have taken advantage by offering cheaper electric cars, causing Volkswagen to lose ground in the sustainable mobility sector. And its future doesn’t look very good.
What is Volkswagen proposing?
Volkswagen has announced the ID. Every1, an electric car designed to be affordable, with a price tag around €20,000. The idea is to attract a public looking for electrification without spending a fortune, but the challenge will be making this model profitable without compromising quality. Of course, the uncertainty of whether this strategy will work or not remains to be seen, as if it doesn’t, Volkswagen could find itself immersed in an even bigger crisis.
And what about currywurst?
Currywurst, a German sausage with tomato and curry sauce, has been part of the company’s culture since 1973. Initially created to feed factory workers, it is now sold in supermarkets and restaurants throughout Germany and 12 other countries.
It even has an official part number in the Volkswagen spare parts catalogue: 199 398 500 A. While this culinary success is a curious point in the company’s history, it doesn’t (for now) solve the company’s serious financial problems, although they could have a rather interesting market niche there.
Also embroiled in controversy
In 2021, Volkswagen attempted to remove currywurst from its Wolfsburg headquarters menu to expand its vegetarian options. The decision sparked significant controversy, even drawing protest from former German Chancellor Gerhard Schröder, who called it an icon of German society. Following public backlash, Volkswagen reintroduced the sausage into its menu.
Mass layoffs
While currywurst continues to break records, Volkswagen has had to make drastic decisions in its core business. To reduce costs, the company has announced the layoff of 35,000 employees over the next few years, a measure that particularly affects its factories in Germany.
And even worse are the problems with the United States and the return to power of Donald Trump, who has threatened to impose tariffs on European cars, which could affect Volkswagen’s exports to North America.
Despite the crisis, Volkswagen is confident of a rebound starting in 2025. The company has projected revenue growth of more than 5% and continues to focus on electrification to compete with Tesla and BYD.
Of course, the transition to electric cars won’t be easy. Battery prices remain high, government incentives are constantly changing, and competition is fiercer than ever.
The fact that Volkswagen sells more sausages than cars is a situation that, while curious, reflects the significant challenges facing the automaker. It remains to be seen how they fare in 2025 and whether they will end up taking more drastic measures to address their market position.