German VW factories adjust production to cater to high-demand traditional vehicles over slowing electric cars
3:33 AM EST, February 4, 2024, updated: 4:23 AM EST, March 7, 2024
VW in Germany intends to implement changes to its facilities very soon. As reported by Businessinsider.de, in 2025 and 2026, the company plans to suspend an agreement that provides a choice between additional pay and time off. Consequently, some of the staff may be obligated to take time off.
Germany: Some VW factories slowing down while others increase production
German media reports that changes in operations at factories have already commenced. The Wolfsburg facility, where the Golf and Tiguan, among other cars, are manufactured, will initiate additional shifts. Meanwhile, in Emden, where the Passat and ID.7 are assembled, production will come to a halt for two days in a week.
What's the rationale behind the auto giant's decision? The law of demand. At the first of these plants, not only the hit Golf but also the Skoda Superb (also manufactured in Bratislava) are produced. There is significant interest here. In contrast, the Passat and ID.7 aren't as popular.
The assembly line issues in Emden are unsurprising. As early as June, it was apparent that demand for electric cars constructed in the plant was almost 30 percent below the original prediction. For similar reasons, VW also modified its original plans for the Dresden factory, where the ID.3 is produced.
China's electric vehicles are a challenge for Germany
"The Economist" highlights that according to press reports, orders for electric vehicles from the group are 30 to 70 percent lower than expected. The company is still grappling with software issues, and in the rapidly growing Chinese electric vehicle market, Volkswagen lags, with a scant 2 percent share.
In the meantime, Chinese electric vehicle manufacturers are progressively expanding into Europe. China already accounts for 55 percent of global sales of these vehicles.
According to BloombergNEF, in 2023, electric car sales could hit 14 million units - a 35 percent increase compared to the previous year. American Tesla and Chinese BYD are leading this surge. Total sales in Europe are estimated at 3 million units. This impacts the decisions of German
