Electric car sales performance is poor? Volkswagen is reportedly planning to temporarily shut down some of its Emden factories

Volkswagen may temporarily shut down some Emden factories due to poor electric car sales

【PhoneAuto News】According to foreign media reports, a recent report shows that part of Volkswagen’s Emden factory in northwest Germany will continue to be closed for six weeks. Factory workers on the electric vehicle production line will receive an extended summer break of one month, and one shift will be canceled for two weeks.

Volkswagen factory

According to the report, this information was provided to local German media by Manfred Wulff, head of the Emden factory works council. The affected models include the ID.4 electric SUV and the upcoming ID.7 electric sedan. The production of gasoline models, including the Passat, will not be affected. Wulff also claimed that Volkswagen has reduced the number of factory workers. 300 out of 1500 temporary workers will not have their contracts renewed in August 2023. Layoffs and extended holidays indicate a conclusion: Volkswagen’s electric vehicle sales may be in crisis.

• BMW i4 eDrive35 officially launched, priced at 429,900 yuan, with significant upgrades in the car’s technology
• Pickup trucks and SUVs causing trouble! Organization claims pedestrian deaths in the United States hit a 40-year high
• New Star Journey Lingyun starts pre-sales, with prices starting from 149,900 yuan The interior has been upgraded luxuriously

Volkswagen Emden factory

Compared with the initial production data, the demand for electric vehicles has dropped by 30%. In addition, Wulff told reporters that the purchase intention of potential electric vehicle buyers is declining. The ID.7, originally scheduled for production in July 2023, has been postponed to later this year. Olaf Lies, the Minister of Economic Affairs of Lower Saxony, revealed in an interview that Volkswagen’s decision in Emden is “understandable.” To cope with the decline in sales, he called on the government to reduce value-added tax and provide additional incentives for electric vehicles.

Volkswagen Electric Vehicle Production

According to data released by the Volkswagen Group, its sales in Europe increased by 68% in the first quarter of 2023 compared to the previous year, while sales in the United States significantly grew by 98%. However, Volkswagen’s sales in China declined by 25%, which is a cause for concern as China is Volkswagen’s largest market and the world’s largest electric vehicle market.

Currently, Volkswagen has electric vehicle factories in multiple locations around the world, with four locations in Germany: Emden, Hanover, Dresden, and Zwickau. Its overseas electric vehicle factories mainly produce the popular ID.4 and are located in Anting and Foshan in China, as well as Chattanooga, Tennessee in the United States.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!