Friday, July 19, 2024
NewsVolkswagen Cuts Shift at EV Plant Over Low Demand

Volkswagen Cuts Shift at EV Plant Over Low Demand

VW struggling to find EV buyers

  • VW has blamed Tesla and China for its EV woes

  • Shift cut follows months of production pauses

Reacting to a drop in demand for EVs, Volkswagen Group is cutting its Zwickau plant back from three shifts to just two. This affects ID.3 and Cupra Born model production.

“The decision ensures productive operation and the future viability of the site,” a VW spokesperson said, Via Auto News Europe).

Zwickau was the first Volkswagen Group plant converted over entirely to electric vehicle production. It has already faced issues as a result, including production stops of Audi Q4 e-tron models and the ID.4 earlier this month. But those are due to parts shortages, not slow demand.

Volkswagen has also previously paused production at the plant, with one and two-week stoppages earlier this year to attempt to manage supply and demand.

The automaker has cited heavy competition from Tesla for the low demand, as well as the influx into Europe of low-cost EVs from China. The European Commission has already launched an investigation into that segment of the market to determine if customs duties are needed to help protect European manufacturers.

VW had also put off a decision on a site for a fourth battery gigafactory location to be built in Europe because of low demand.



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