This case examines the fundamental transformation challenges facing Volkswagen Group as it navigates the intersection of deglobalization and industry disruption. Through chief executive officer Oliver Blume’s perspective, we see how traditionally successful global strategies can become vulnerable when the underlying assumptions of globalization are challenged. The automotive industry was transforming due to technological changes, new consumer preferences, and environmental regulations, while the rise of electric vehicles (EVs), particularly from Chinese competitors, reshaped the market. Geopolitics complicated this transition, including the US–China and European Union–Russia decoupling tensions and the Ukraine War, which disrupted supply chains.
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