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Amid a number of stories that Volkswagen is reducing EV manufacturing at two German crops, the automaker revealed the rationale – slowing demand.
Volkswagen suspends EV manufacturing in Germany
Final week, a report from the German newspaper Automobilwoche claimed Volkswagen was pausing EV manufacturing at its Dresden facility in Germany.
Volkswagen’s Dresden facility has constructed over 150,000 VW Phaeton, e-Golf, ID.3, and Bentley Flying Spur fashions since starting manufacturing in 2002. Final 12 months, 6,500 ID.3 EVs have been constructed on the location.
The automaker will briefly droop ID.3 manufacturing on the plant for 2 weeks in the course of the Saxon autumn holidays, as first reported by Germany’s DPA information. Beginning October 16, the electrical automotive can be constructed once more in common single-shift operation.
Dresden’s roughly 300 workers can be reassigned to different areas, together with “revolutionary manufacturing and testing.”
In the meantime, at Volkswagen’s most important BEV plant in Zwichau, one of many two manufacturing traces will shut down in the course of the holidays, in line with a spokesperson (by way of Automobilwoche).
The information comes after VW introduced at a employees assembly earlier this month it will be reducing 269 momentary jobs on the website.
Though Volkswagen’s ID.3 and Cupra Born can be impacted by the halt, ID.4, ID.5, Audi This fall e-tron, and Audi This fall sportback e-tron fashions will proceed common manufacturing in three shifts.
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Volkswagen is discussing with native labor reps how you can proceed with EV manufacturing on the Zwickau plant.
The corporate didn’t specify what number of models or workers can be affected by the modifications.
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Volkswagen is struggling to draw new EV orders amid increased inflation and weaning subsidies in Europe. Europe’s largest automaker additionally faces a rising menace from extra superior EV rivals like Tesla and BYD.
Electrek’s Take
The core Volkswagen model faces stress as cheaper, extra superior EVs are taking market share at house and overseas.
In Volkswagen’s largest market by income (China), the automaker was surpassed by BYD because the best-selling automotive model earlier this 12 months.
Within the wake of slowing demand, VW slashed ID.3 and ID.4 costs within the area. However how lengthy can VW hold this up?
Volkswagen Group CEO Oliver Blume goals to spice up VW model returns to six.5% over the subsequent three years. At the moment, it’s round 3.6%.
With EV makers like Tesla, BYD, and a number of other different Chinese language start-ups increasing quickly, Volkswagen might want to act urgently to danger falling additional behind.
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