Volkswagen has struggled in the electric car market. The production of the plant in Emden, Germany, has been reduced.
Part of the Volkswagen plant in Emden in northwest Germany will be closed for six weeks, according to a new report. Plant workers on electric vehicle lines will receive an extended summer vacation for one month, and one shift will be canceled for two weeks.
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The information was provided by Manfred Wulff, head of the workers’ council of the Emden plant, to the German Press Agency and the Nordwest Zeitung (North West newspaper).
Affected models include the ID.4 electric SUV and the upcoming ID.7 electric sedan. We reviewed ID.7 in April of this year. The production of internal combustion engine models, including the Passat, remains unchanged.
Wolf also announced a reduction in the number of workers at the plant. Out of 300 out of 1,500 temporary workers, contracts will not be renewed in August 2023. Reducing the workforce and extended holidays point to one conclusion: it’s a sales crisis.
Demand for electric vehicles fell by 30% compared to initial production figures. In addition, potential EV buyers are showing signs of reluctance, Wulff told the Nordwest Zeitung. Production of the ID.7, originally scheduled for July 2023, has been pushed back to the end of this year.
Olaf Lies, Lower Saxony’s economy minister, told the newspaper that Volkswagen’s decision in Emden was “understandable.” To counter falling sales, he called for lower value-added tax (VAT) and more incentives for electric vehicles.
Volkswagen Group sales grew by 68 percent in Europe in the first quarter of 2023 compared to the same period last year, while US sales grew by an impressive 98 percent. However, sales in China fell by an alarming 25 percent, as it is the VW Group’s largest market and also the largest plug-in car market by volume in the world.
Read also: Volkswagen promises ID.7 electric sedan a range of 700 kilometers.
Volkswagen announced last year that it plans to invest about $1.1 billion to retool its Emden plant for electric vehicles on the MEB platform. The company employs 8 thousand people.
The brand produces electric vehicles at many factories around the world, four of which are in Germany: Emden, Hannover, Dresden and Zwickau. Its international electric vehicle manufacturing plants, which primarily produce the popular ID.4, are located in Anting and Foshan in China and Chattanooga, Tennessee in the US.
2023-06-28 18:58:00
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