Volkswagen’s electric vehicle production struggles continue to plague its German operations. Volkswagen has temporarily halted electric vehicle production at its German factory due to a shortage of electric motors.
Volkswagen temporarily suspends electric vehicle production at its German factory.
Volkswagen has temporarily suspended production of several electric models at its German plant, following on from a halt at its Dresden facility last month.
Volkswagen has temporarily suspended electric vehicle production at its Zwickau factory for approximately three weeks. The explanation? An absence of electrical motors. A Volkswagen spokesperson said that the production of e-drives on the company’s parts website in Kassel is currently only available to a limited extent.
The temporary shutdown of manufacturing will have a significant impact on VW Group’s electric vehicle lineup, including the upcoming Audi Fall e-tron (Sportback) and Volkswagen ID.4 and ID.5 models.
The Volkswagen Group’s all-electric models, including the VW ID.3 and Cupra Born, remain largely unaffected by the global semiconductor shortage.
Located in Germany, Zwickau is Volkswagen’s largest electric vehicle (EV) production site in Europe. The automotive manufacturer invested nearly $1.3 billion in 2018 to revamp its plant, enabling the production of electric vehicles.
Despite this, rising interest rates and reduced government incentives are driving down consumer appetite for the VW model. Volkswagen will cut around 300 jobs at its Dresden plant by the end of October, attributing the decision to a decline in orders.
The information emerged following Volkswagen’s prior decision to shut down a production line at Zwickau due to sluggish demand.
Although electric vehicle deliveries surged 45% during the initial nine months of the year, Chief Financial Officer Arno Antilitz noted that EV orders in Europe have plummeted to a mere 150,000. Compared to last year’s total of 300,000, this is a reduction of 50%.
Volkswagen’s electric vehicle (EV) gross sales share surged to a record 9% in the third quarter, putting it well on track to achieve its ambitious target of an 8%-10% market share for the full year 2023.
Electrek’s Take
While reports abound of slowing electric vehicle (EV) demand linked to manufacturers like Volkswagen, Ford, and General Motors postponing production and EV goals, this narrative isn’t entirely accurate.
As larger interest rates combine with Tesla’s significant valuation reductions over the past year, the playing field is increasingly levelled in favor of its competitors.
Tesla’s Model Y was the best-selling vehicle overall in September, poised to become the top-selling car worldwide by year-end.
With a head start, Tesla is leveraging its advantage to produce increasing volumes. As the electric vehicle division’s leader takes steps to reduce expenses, they are effectively creating a formidable barrier to entry for competing companies.
By September, European markets accounted for a substantial 61% of Volkswagen’s overall electric vehicle sales. In the second place, China stood as the corporation’s most lucrative market for earnings. Despite a modest 4% increase in Chinese deliveries, concerns persist that Volkswagen may cede market share until its new electric vehicle (EV) models are released, potentially rivaling those from XPeng.
