Among several studies, Volkswagen has disclosed the reason behind its decision to scale back electric vehicle (EV) production at two German plants: slowing demand.
Volkswagen halts electric vehicle production in Germany.
Last week, reports emerged that Volkswagen had temporarily halted electric vehicle (EV) production at its Dresden plant in Germany, according to the German newspaper e.
Since its inception in 2002, Volkswagen’s Dresden facility has produced over 150,000 units of various models, including the VW Phaeton, e-Golf, ID.3, and Bentley Flying Spur, solidifying its significance within the company’s global manufacturing network. In the past year, Volkswagen’s ID.3 electric vehicle production reached a milestone of 6,500 units at its manufacturing site.
The German automaker will temporarily pause production at its ID.3 manufacturing facility for approximately two weeks during the upcoming Saxon autumn holiday period, according to a report by Germany’s leading news source. Starting October 16, production of electric vehicles will resume on a standard single-shift schedule.
The city of Dresden is expected to reassign approximately 300 employees to new roles within the company, alongside efforts to modernize its manufacturing and testing processes.
During the holiday period, one of the two production lines at Volkswagen’s main battery-electric vehicle (BEV) facility in Zwickau will be temporarily shut down, according to a company spokesperson.
After VW’s recent announcement at a worker’s assembly, the company plans to eliminate 269 temporary positions from its website.
Although Volkswagen’s ID.3 and Cupra Born production may be affected by the halt, ID.4, ID.5, Audi’s upcoming e-tron and e-tron Sportback models will continue to roll off the assembly lines in three shifts as scheduled.
Volkswagen is engaging in constructive dialogue with local labour representatives to determine the most effective approach for electric vehicle production at its Zwickau facility.
The corporation declined to provide specifics on the scope of the anticipated changes, neither clarifying how many employees or products would be impacted.
Volkswagen faces a challenge in generating fresh electric vehicle (EV) demand as European consumers grapple with rising inflation and the phasing out of incentives for eco-friendly car purchases. As Europe’s largest automaker, Volkswagen is confronted by an escalating threat from more advanced electric vehicle (EV) competitors such as Tesla and BYD.
Electrek’s Take
The Golf, Volkswagen’s flagship model, is facing a squeeze as increasingly affordable and technologically advanced electric vehicles (EVs) capture market share domestically and internationally?
In China, Volkswagen’s largest market by revenue, the company was outpaced by BYD in terms of the best-selling vehicle model for the past year?
As demand wanes, Volkswagen has taken steps to revitalize sales by slashing prices for its ID.3 and ID.4 models in certain regions. Despite the initial hype surrounding autonomous vehicles, Volkswagen has a significant challenge on its hands in preserving the market interest for such technology.
Volkswagen Group CEO, Oliver Blume, aims to boost the company’s market share to 6.5% within the next three years. At present, it’s round 3.6%.
As electric vehicle (EV) manufacturers like Tesla, BYD, and numerous other Chinese startups gain momentum, Volkswagen must take swift action to prevent falling further behind.
