Wednesday, May 18, 2022
News Volkswagen to Resume Production of EVs in Germany

Volkswagen to Resume Production of EVs in Germany

Volkswagen will resume production of its electric models starting next week.

  • Volkswagen stopped production of its electric models due to shortages of Ukraine-made components

  • The supply of wire harnesses is the main problem

  • A Ukrainian supplier said it will ramp up production despite the ongoing war

Volkswagen announced it will restart the production of its electric vehicles in German factories ahead of schedule due to an increase in the supply of components.

At the end of February, Volkswagen (and other German automakers) said it would be temporarily stopping some of its production lines due to a shortage of auto parts made in Ukraine.

The war between Russia and Ukraine has caused the factories in the invaded country to go idle, which has affected the supply chain for many factories in Europe, notably in Germany.

The most important component that was sourced in Ukraine by a number of automakers are wire harnesses. These are a crucial element in any vehicle, but especially ones powered by electric motors.

This is why production of EVs has been more affected than the production of gasoline powered vehicles. The automaker originally planned to have a few of its factories remain idle until April.

As soon as the crisis began, Volkswagen set up a task force to look into the impacts it could have on the supply chain and how these impacts could be lessened.

Recently, a major Ukrainian producer of wire harnesses, Leoni, promised to ramp its production back up, despite the risks to the employees and to the building itself.

This has led Volkswagen to announce its production of electric vehicles will restart next week, which is slightly earlier than had been planned for the Zwickau and Dresden plants.

This will have impacts in Canada, since the Audi Q4 e-Tron and the Volkswagen ID.4 that are sold here are both made in the Zwickau factory.

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