industrial competitiveness

China has become the world’s most important test case for the future of cars. Tesla, Porsche, Volkswagen, GM, Honda, Nissan, BMW, and Mercedes-Benz are all facing pressure as Chinese automakers gain share with faster product cycles, lower prices, stronger software, and more locally tailored electric vehicles.

Volkswagen is cutting up to half of its vehicle lineup, but the real story is what happened in the boardroom. The July 9 Supervisory Board meeting may have approved the first phase of Volkswagen's transformation—while leaving the most difficult decisions for another day.

Volkswagen’s supervisory board rejected management’s broader restructuring proposal by a 12–7 vote. The meeting highlighted a question increasingly confronting large industrial companies: how can organizations balance the interests of employees, investors, communities, and governments while responding to rapidly evolving global competition.