Volkswagen labour chief takes company to task on China, in FAZ interview

(Reuters) – Volkswagen’s works council chief Daniela Cavallo said the carmaker must do more to understand the Chinese market in order to capture greater market share, after missing its electric vehicle sales targets in the country last year.

“Volkswagen must get its act together in China and understand customers’ needs better, particularly in software,” Cavallo said in an interview with Germany’s Frankfurter Allgemeine Zeitung published on Wednesday.

The German automaker sold 70,625 ID electric vehicles in China last year, missing its goal of 80,000 to 100,000 cars, with production affected by regional COVID-19 outbreaks as well as chip-related issues.

Foreign automakers have struggled to compete with their Chinese counterparts in the Chinese market, with U.S.-based Tesla the only foreign brand among the top 10 electric vehicle sellers in the country.

“For a German driver, it may not be important to have a karaoke system on the central screen, but many Chinese customers love such features and are disappointed when VW does not offer them,” Cavallo told the FAZ.

(Reporting by Victoria Waldersee; additional writing by Tom Sims; Editing by Leslie Adler)