Volkswagen has announced a temporary reduction in the production of its electric vehicles in Germany, a direct consequence of weak demand in Europe and the impact of tariffs imposed by the United States.
The Zwickau plant, which assembles the Audi Q4 e-tron, will suspend activities for one week starting October 6. The same scenario is planned for Dresden, where work will be interrupted during the first week of the autumn break in late October.
Emden plant also affected
At Emden, where the ID.4 and ID.7 are manufactured, employee working hours have already been reduced. Some production lines may even be shut down for several days, according to Bloomberg.
Although Volkswagen maintained its top spot in Europe ahead of Tesla for EV sales in August, growth remains too slow to justify maintaining full capacity at the plants, which were modernized at great expense.
Other plants affected
In Hanover, production of the ID. Buzz and T7 Multivan will be stopped for five days this fall.
In Osnabrück, production weeks will be shortened until the end of the year, with a full week of closure planned for October. VW plans to end production at that site for the VW T-Roc Cabriolet, as well as for the Porsche Cayman and Boxster. Volkswagen is also considering other scenarios for the future of that plant.
Rising costs and Chinese competition
This series of slowdowns is part of a broader strategy to reduce production capacity and workforce in Germany. Last December, Volkswagen reached an agreement with unions to reduce its production by more than 700,000 vehicles and cut 35,000 jobs by 2030.
However, jobs at Emden and Zwickau are reportedly protected. Zwickau is even slated to become a future automotive recycling centre.
Stellantis also cutting back
Volkswagen is not the only company in this situation: rival auto giant Stellantis has also announced a production pause at six of its European plants, due to a slower-than-expected market.