PART 02/08 — CHINA BUSINESS IN DANGER

DATE:
February 2, 2022

On February 2, 2022, Gredi Nikollaj sent an internal escalation email titled:

CHINA BUSINESS IN DANGER

The message was addressed to:
• Herbert Diess
• Arno Antlitz
• Markus Duesmann
• Juergen Rittersberger

The email described severe structural and operational problems within Volkswagen China operations.

Key issues referenced:
• PPE factory chaos
• failures in the two-partner strategy
• CKD negotiation losses
• ineffective middle management
• financial losses approaching €1 billion
• strategic failures in China operations

Quoted passages included:

“CKD negotiation result B10: disastrous – nearly 1 billion euros wasted.”

“The management at OE1 level is asleep.”

“If we do not react now, the China market will collapse for the group.”

The email also proposed a cross-brand China task force, restructuring measures, management changes and operational realignment.

KEYWORDS:
China Business In Danger, Volkswagen China, Audi China, CKD, PPE, Volkswagen Group, Herbert Diess