Amid a number of stories that Volkswagen is slicing EV manufacturing at two German crops, the automaker revealed the explanation – slowing demand.
Volkswagen suspends EV manufacturing in Germany
Final week, a report from the German newspaper Automobilwoche claimed Volkswagen was pausing EV manufacturing at its Dresden facility in Germany.
Volkswagen’s Dresden facility has constructed over 150,000 VW Phaeton, e-Golf, ID.3, and Bentley Flying Spur fashions since starting manufacturing in 2002. Final yr, 6,500 ID.3 EVs had been constructed on the location.
The automaker will quickly droop ID.3 manufacturing on the plant for 2 weeks through the Saxon autumn holidays, as first reported by Germany’s DPA information. Beginning October 16, the electrical automobile can be constructed once more in common single-shift operation.
Dresden’s roughly 300 staff can be reassigned to different areas, together with “modern manufacturing and testing.”
In the meantime, at Volkswagen’s fundamental BEV plant in Zwichau, one of many two manufacturing strains will shut down through the holidays, in line with a spokesperson (through Automobilwoche).
The information comes after VW introduced at a employees assembly earlier this month it could be slicing 269 momentary jobs on the website.
Though Volkswagen’s ID.3 and Cupra Born can be impacted by the halt, ID.4, ID.5, Audi This fall e-tron, and Audi This fall sportback e-tron fashions will proceed common manufacturing in three shifts.
Volkswagen is discussing with native labor reps methods to proceed with EV manufacturing on the Zwickau plant.
The corporate didn’t specify what number of models or staff can be affected by the adjustments.
Volkswagen is struggling to draw new EV orders amid increased inflation and weaning subsidies in Europe. Europe’s largest automaker additionally faces a rising risk from extra superior EV opponents like Tesla and BYD.
Electrek’s Take
The core Volkswagen model faces stress as cheaper, extra superior EVs are taking market share at dwelling and overseas.
In Volkswagen’s largest market by income (China), the automaker was surpassed by BYD because the best-selling automobile model earlier this yr.
Within the wake of slowing demand, VW slashed ID.3 and ID.4 costs within the area. However how lengthy can VW preserve this up?
Volkswagen Group CEO Oliver Blume goals to spice up VW model returns to six.5% over the following three years. At the moment, it’s round 3.6%.
With EV makers like Tesla, BYD, and several other different Chinese language start-ups increasing quickly, Volkswagen might want to act urgently to threat falling additional behind.
