According to media reports, Volkswagen is reducing the production of electric vehicles at its Emden factory in northern Germany due to poor sales.
German media cited information from the factory's labor union, reporting that Volkswagen will decrease the production of the ID.4 all-electric SUV and the brand-new ID.7 all-electric sedan in the upcoming two weeks.
The vacation period for employees responsible for electric vehicle production at the Emden factory will be extended by an additional week, making it a total of four weeks. Out of the 1,500 temporary workers currently employed at the factory, approximately 300 will be laid off starting in August.
Manfred Wulff, the director of the factory's labor union, expressed to the media that the market demand for electric vehicles produced by the factory is nearly 30% lower than the initially planned production volume. The union revealed that the production of the internal combustion engine model Passat will continue unchanged.
A Volkswagen spokesperson stated to the media, "We believe that with the launch of the ID.7 by the end of the year, the factory's capacity utilization will improve once again." He further mentioned that the incremental demand for electric cars is decreasing as subsidies are being stopped or reduced in countries such as Germany, Sweden, and France. Volkswagen expects the annual sales of electric vehicles in the European Union this year to remain flat compared to last year or achieve a moderate growth of up to 5%.
Volkswagen Group continues to view electrification as a crucial means to gain a larger global market share. By the end of the first quarter of 2023, the group experienced a significant surge in electric ve
hicle sales, with deliveries of fully electric cars growing by 50% compared to the same period last year.
