VW Chief Defends Globalization at Davos

The boss of Europe’s largest carmaker, Volkswagen, gave his backing to globalization on Wednesday despite world trade coming under increasing pressure.

There has been talk of “new block-building,” VW boss Herbert Diess told journalists on the sidelines of the World Economic Forum in Davos. This was “a concern for us as a global company.”

It was “positive and motivating” that some European leaders had advocated for an open world, Diess said.

“Germany depends on open markets,” he added, arguing that countries should not be too self-sufficient, despite the difficulties caused by a lack of electronic chips and expensive raw materials that have slowed the global economy.

While a dependence on certain supplier countries, such as Taiwan for semiconductors, is currently perceived negatively, it also helps in certain ways, he said.

Taiwan, he said, would be less safe if Taiwan no longer produced semiconductors.

He argued furthermore that pulling VW out of the Chinese western region of Xinjiang would have predominantly negative consequences for the region.

In general he said that the supply chain problems that have dogged car manufacturers in the past year should ease in the coming year for passenger cars.

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VW Chief Defends Globalization at Davos - /10

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The boss of Europe's largest carmaker, Volkswagen, gave his backing to globalization on Wednesday despite world trade coming under increasing pressure.

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