Photo: Volkswagen
Volkswagen's woes continue as demand for its electric vehicles is dwindling. The German carmaker responded with more production halts well into October. Volkswagen also seeks to cut the third shift at its main plants in Wolfsburg, Zwickau, and Emden.
Volkswagen Group has not done very well since Oliver Blume took over from Herbert Diess. Its signature brand, especially, seems to be in deep trouble, and Blume ordered Volkswagen boss Thomas Schaefer to expedite cost-cutting measures. Schaefer famously said in July that "the roof is on fire" and pressed for cost-cutting measures in a desperate bid to reduce spending by 10 billion euros ($11.2 billion).
Volkswagen's EV program is mainly to blame for the situation, although it's got more to do with how chaotically it has been executed. Volkswagen rushed the ID.3 to the market, and then it made the flawed MEB platform the foundation of its EV strategy. The MEB architecture was supposed to be a stop-gap solution, but instead, it became Volkswagen's only option in the EV market. All current and future electric vehicles in the Volkswagen brand's lineup are based on this platform, and there's little hope that its replacement will arrive by the end of this decade.
That's centuries in the tech-laden EV market dominated by Tesla. The worst part is that Volkswagen customers noticed and are now shunning Volkswagen EV models. The most hated is, arguably, the ID.3, despite a recent redesign aimed at making it more attractive. The ID.3 is built at the Zwickau plant alongside its sibling, Cupra Born, and also in Dresden, albeit in small numbers.
Both facilities were affected by temporary production pauses, with more to come in the coming months. A Volkswagen spokesperson explained that the decision was triggered by weakened demand for the two EVs. Production of other MEB-based EVs, such as the ID.4, ID.5, Audi Q4 e-tron, and Audi Q4 Sportback e-tron, will continue in a three-shift operation in Zwickau.
This is the first time Volkswagen has acknowledged the demand problem for its EVs. In July, ID.4 production at the Emden plant was also slashed, with Manfred Wulff, head of the works council at the plant, blaming "strong customer reluctance in the electric vehicle sector."
The Zwickau plant has an annual capacity of 360,000 EVs, but it only produced about 218,000 vehicles in 2022. This year looks even weaker, although it will likely be overshadowed by 2024. Volkswagen is already looking to permanently scrap the third shift at the plant by renegotiating a new contract with its workers. The current agreement has been in place since 1991 and ends on December 31.
Based on information from the German press agency DPA, Volkswagen also wants to cut the third shift at the Wolfsburg and Emden sites. While Wolfsburg assembles Volkswagen's ICE models, such as the Golf, Tiguan, and Touran, Emden is responsible for the ID.4 production and, later, the ID.7.
Volkswagen's EV program is mainly to blame for the situation, although it's got more to do with how chaotically it has been executed. Volkswagen rushed the ID.3 to the market, and then it made the flawed MEB platform the foundation of its EV strategy. The MEB architecture was supposed to be a stop-gap solution, but instead, it became Volkswagen's only option in the EV market. All current and future electric vehicles in the Volkswagen brand's lineup are based on this platform, and there's little hope that its replacement will arrive by the end of this decade.
That's centuries in the tech-laden EV market dominated by Tesla. The worst part is that Volkswagen customers noticed and are now shunning Volkswagen EV models. The most hated is, arguably, the ID.3, despite a recent redesign aimed at making it more attractive. The ID.3 is built at the Zwickau plant alongside its sibling, Cupra Born, and also in Dresden, albeit in small numbers.
Both facilities were affected by temporary production pauses, with more to come in the coming months. A Volkswagen spokesperson explained that the decision was triggered by weakened demand for the two EVs. Production of other MEB-based EVs, such as the ID.4, ID.5, Audi Q4 e-tron, and Audi Q4 Sportback e-tron, will continue in a three-shift operation in Zwickau.
This is the first time Volkswagen has acknowledged the demand problem for its EVs. In July, ID.4 production at the Emden plant was also slashed, with Manfred Wulff, head of the works council at the plant, blaming "strong customer reluctance in the electric vehicle sector."
The Zwickau plant has an annual capacity of 360,000 EVs, but it only produced about 218,000 vehicles in 2022. This year looks even weaker, although it will likely be overshadowed by 2024. Volkswagen is already looking to permanently scrap the third shift at the plant by renegotiating a new contract with its workers. The current agreement has been in place since 1991 and ends on December 31.
Based on information from the German press agency DPA, Volkswagen also wants to cut the third shift at the Wolfsburg and Emden sites. While Wolfsburg assembles Volkswagen's ICE models, such as the Golf, Tiguan, and Touran, Emden is responsible for the ID.4 production and, later, the ID.7.
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