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Volkswagen Cuts Output, Pauses Production at German EV Plants
But Planned Halt in Production at Factory in Zwickau Will Last Just a Week Starting Oct. 6
Volkswagen AG is curbing volume and introducing temporary shutdowns at two German factories as demand for its electric vehicles grows more slowly than predicted.
VW’s factory in Zwickau will halt production for a week starting Oct. 6, due to weak demand for the Audi Q4 e-tron, a spokesperson for the site said. The model is being hit by U.S. tariffs and Germany’s push to soften the European Union’s ban on new combustion-engine car sales.
The Emden plant, which produces the VW brand’s ID.4 and ID.7 models, has cut back employee hours and is also expected to shut down factory lines for several days, people familiar with the situation said, speaking on condition of anonymity to discuss confidential information.
The two sites produce EVs exclusively, making them especially vulnerable to fluctuations in demand for battery-powered models. While VW is benefiting from growing EV sales in Europe, the overall pace of growth in the region is proving slower and more uneven than initially anticipated.
VW is also struggling with excess capacity. The two plants were part of VW’s vast restructuring deal last year, in which labor leaders agreed to whittle down factory costs and cut 35,000 jobs by the end of the decade to avoid factory closures. Under that agreement, jobs in Emden, along Germany’s northern coast, and Zwickau, in Germany’s east, close to the Czech border, are safe.
