Volkswagen temporarily shut down several factories due to weak demand

In particular, the start of production of the ID.7 electric liftback was postponed to the end of this year, although the serial launch was originally scheduled for July.

Volkswagen brand faced sagging demand for its models in several markets at once, because of which the company had to temporarily suspend several conveyors. The decision, in particular, affected the plant located in Emden (Germany). The production of the all-electric Volkswagen ID.4 crossover has now been launched here, and next month the serial production of the “green” ID.7 liftback was supposed to start.

Nordwest Zeitung reports, citing Manfred Wulff, head of the works council at the Emden plant, that the company has decided to extend the summer vacation period for employees «electromobile line» of the enterprise. The start of production of the five-door Volkswagen ID.7 was postponed to the end of 2023. At the same time, changes in the work schedule will not affect those employees who are engaged in the production of cars with internal combustion engines (including Passat).

According to the representative of the enterprise, the company also decided to reduce the staff of the plant in Emden: in August of this year, the contracts of three hundred temporary workers (now the total number is 1.5 thousand people) will not be extended.

Pictured: Volkswagen ID.7

Manfred Wulff explained the decision to reduce the production of cars by the fact that the demand for electric vehicles decreased by 30% compared to the initial estimated figures that formed the basis of production plans. Recall that last year VW announced an investment of about $ 1.1 billion, which was supposed to be spent on the conversion of lines for the production of electric vehicles on a modular MEB platform.

Cumulative sales of Volkswagen Group cars in Europe for the first quarter of the current year 2023 increased by 68% (compared to January-March 2022). During the same period, US sales grew by a solid 98%. At the same time, in China, the largest market for VW, a decline was recorded, and immediately by 25%.

T-Cross

The decline in demand for Volkswagen cars has affected not only electric vehicles. According to the Brazilian motor1, the company announced the suspension of production at three enterprises in Brazil: we are talking about sites in Sao Bernardo do Campo, Taubate and Sao Jose dos Pinhais. Only the engine plant located in San Carlos will continue to work without downtime.

The first of these enterprises launched the production of the restyled Polo, Virtus, Nivus and the Saveiro pickup truck. The Polo Track (the brand's entry-level model) comes off the production line. And the third produces the T-Cross crossover. Here the company also decided to resort to collective vacations and partial layoffs. By the way, in Brazil, sales of brand cars in the period from January to May 2023 increased by 36% (compared to the same period last year).