Volkswagen Temporarily Scales Back Production of Electric Models

Volkswagen, the German car maker, has announced that it will temporarily reduce production of electric models at its Emden plant in Lower Saxony. The move comes as a result of “strong customer reluctance” towards electric vehicles, according to Manfred Wulff, the head of the works council for the Emden plant. The shift at the plant has been cancelled for the next two weeks, with an extended four-week summer holiday period for workers on electric vehicle lines in July and August. Among the models affected are the ID.4 SUV and early production of the ID.7 saloon.

Demand for Electric Vehicles Below Planned Production Figures

Wulff has indicated that demand for electric vehicles is up to 30 per cent below originally planned production figures. He said that production of the ID.7 saloon had originally been planned to start in July but has now been delayed to “later this year”. The reduction in electric vehicle production will not affect the production of combustion engine models, including the Volkswagen Passat, which will continue unchanged. However, the factory holidays for electric vehicle line workers have been extended by one week.

Temporary Workers Not to Have Contracts Renewed

In addition to the reduction in electric vehicle production, Wulff has also announced that 300 of the current 1500 temporary workers employed at Volkswagen’s Emden plant will not have their contracts renewed in August 2023. The employees were informed about the reduction in electric vehicle production on Monday.

Volkswagen Invests €1 Billion in Site for Electric Vehicle Production

Volkswagen has invested around €1 billion (£858 million) in the Emden plant for electric vehicle production. The production of the internal combustion engine Passat is set to cease at Emden after 46 years when the ninth-generation model arrives later this year. A spokesperson for Volkswagen Emden plant said in a statement: “We are confident that the plant’s utilisation will increase again with the launch of the ID.7 at the end of the year.”

Minister Calls for Discussions on New Incentives for Electric Vehicle Purchases

The minister of economic affairs for the state of Lower Saxony, Olaf Lies, has commented on the measures introduced by Volkswagen at Emden, describing them as “understandable”. Lies has called for discussions on the implementation of new incentives for electric vehicle purchases, including a reduction in value-added tax. Volkswagen currently produces EVs at four plants in Germany, including Emden, Zwickau, Hanover and Dresden.

Conclusion

Volkswagen’s decision to temporarily reduce production of electric models at its Emden plant in Lower Saxony is a response to “strong customer reluctance” towards electric vehicles. The reduction will not affect the production of combustion engine models, including the Volkswagen Passat, which will continue unchanged. However, the factory holidays for electric vehicle line workers have been extended by one week. Volkswagen has invested around €1 billion (£858 million) in the Emden plant for electric vehicle production. The production of the internal combustion engine Passat is set to cease at Emden after 46 years when the ninth-generation model arrives later this year. The minister of economic affairs for the state of Lower Saxony, Olaf Lies, has called for discussions on the implementation of new incentives for electric vehicle purchases, including a reduction in value-added tax.