Volkswagen tests steering-wheel-free EV as financial struggles mount
Volkswagen is pushing ahead with its next-generation electric vehicle technology despite recent financial struggles. The company has begun testing its steering-wheel-free Gen.Urban concept car in real urban traffic in Wolfsburg. Meanwhile, its share price has dropped by nearly 19% since January, reflecting broader challenges in the auto industry. The centrepiece of Volkswagen's strategy is its zonal vehicle architecture, known as SDV. This system has now passed rigorous endurance tests, proving its reliability in controlling critical functions like all-wheel drive and traction control. Unlike traditional setups, the SDV reduces complex wiring and allows seamless over-the-air software updates.
The SDV platform will underpin future electric vehicles in Western markets, serving as a technological foundation. At the same time, Volkswagen is working with Rivian, mirroring its partnership with XPeng in China. Winter tests of three models using Rivian software have been completed, though no immediate plans for US EV development have been announced.
To counter financial pressure, the company has launched a strict cost-cutting programme and is increasing local production in key markets. German auto exports to China have also fallen sharply, dropping to €13.6 billion—less than half their 2022 value. In a move to support staff, Volkswagen will pay employees a €1,250 bonus in May.
Škoda, part of the Volkswagen Group, is also preparing for the electric shift. The brand will launch its compact electric SUV, the Epiq, in autumn 2026. Volkswagen's SDV platform is now road-ready, marking a step forward in its electric vehicle plans. The company continues to face financial headwinds, with falling share prices and reduced exports to China. Employee bonuses and cost-cutting measures aim to stabilise operations as new models, including Škoda's Epiq, prepare for launch.
