VW CEO’s Urgent Message, The First Cybertruck Built, AI Crushing Mentorship

July 17, 2023
Welcome to a beautiful Monday in the car business! Today we’re talking about the VW CEO’s fiery message to his managers. We also cover the first Cybertruck built in Austin, as well as the AI implications on the rookie workforce.
Listen On
Apple Podcasts IconSpotify Icon


Show Notes with links:

In an address to over 2000 senior managers some described as ‘fiery’, Volkswagen CEO Thomas Schaefer warned of significant challenges saying “all is at stake” and “the roof is on fire”   Amid massive investments in electric vehicles, he called for an immediate spending freeze, suggesting operational costs are spiraling. He plans cost-saving "performance programs" and the need for a leaner, more agile company structure.

  • Schaefer called for an immediate freeze on spending, citing high operational costs, and planned to introduce "performance programs" aimed at saving the company over $11 billion over the next three years.
  • The company is set to begin sales of the electric-powered ID.7 sedan in Europe soon, and it also plans to unveil new-generation combustion-engine Tiguan and Passat models.
  • Schaefer criticized the existing structures and processes as being too complex, slow, and inflexible. The company's CFO, Patrik Andreas Mayer, also stressed the critical situation, saying “our vehicle business is unwell’ before describing Schaefer's address as a "last call."

After a two-year delay marked by component shortages, Tesla announced in a tweet on Saturday that it has finally built its first Cybertruck in it’s Austin TX Gigafactory.

  • The photo in the post features a single Cybertruck surrounded by a jovial looking group of hundreds of workers wearing yellow safety vests and hard hats
  • The company’s plans state an expected 250k trucks per year front the plant however, the ramp up plans are still unclear as Tesla eagerly anticipates being a competitor in the lucrative pickup segment

Historically, new technologies have favored the younger generations in the workforce as they quickly adapt to and deploy them in their everyday tasks. That may not be the case with generative AI tools like Chat GPT as they are quickly being utilized to automate the mundane tasks traditionally performed by entry-level workers, potentially stunting their professional development.

  • Over the past several years Corporations have already reduced efforts to foster skill development, with little-to-no training or mentorship programs available, leading to job dissatisfaction and a lack of career mobility among younger employees.
  • Maybe the savviest young people will manage the AI outputs, but what will become of the broader culture of mentorship?

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.