Volkswagen is neck and neck with Toyota as the world’s largest carmaker.
Still, it can feel more like an obstacle course than victory tour for Herbert Diess, who’s been running Volkswagen for the last four years.
Herbert Diess: It is quite a hard decision for us because we have about 7,000 people — loyal people working for us in Russia.
It also makes high-end Audi and Porsche; supercar Lamborghini; luxury Bentley; and even Ducati motorcycles.
Volkswagen is reconfiguring its plant with 4,000 workers in Chattanooga, Tennessee, where they make gasoline SUVs, to also start making the all-electric ID.4.
Scott Keogh: Yeah, but a super cool, all-electric, crazy high-tech Passat, if you will.
Lesley Stahl: You know, in the United States, the best-selling vehicles are trucks.
Herbert Diess: Yeah.
To compete, Volkswagen is trying to recruit thousands of software and battery engineers worldwide.
At that time, over half the Volkswagen cars sold in Europe ran on diesel – which was promoted as a clean energy solution to lower emissions.
Herbert Diess: No, no, no, no.
The business model of global companies like Volkswagen is coming undone as the pandemic has strained long supply lines, leading to shortages in key components like semiconductors.
For all the obstacles in getting electric cars off the ground – war, pandemic, engineer shortages – one thing is working in Volkswagen’s favor: rising gas prices make electric vehicles more appealing.