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Volkswagen’s EV manufacturing woes in Germany proceed. Volkswagen introduced it’s pausing EV manufacturing at its German plant as a result of a scarcity of electrical motors.
Volkswagen halts EV manufacturing at German plant
After halting EV manufacturing at its Dresden website final month, Volkswagen is pausing output of a number of electrical motels at one other plant in Germany.
Volkswagen is pausing EV manufacturing at its Zwickau plant for roughly three weeks. The explanation? An absence of electrical motors. A VW spokesperson advised Reuters, “The manufacturing of e-drives on the Volkswagen Group Elements website in Kassel is at present solely attainable to a restricted extent.”
The halt in manufacturing will impression VW Group electrical fashions, together with the Audi This fall e-tron (and Sportback) and the Volkswagen ID.4 and ID.5 fashions.
Based on the supply, the electrical VW ID.3 and Cupra Born aren’t affected by the scarcity.
Zwickau is Volkswagen’s largest EV manufacturing website in Europe. The automaker introduced a virtually $1.3B funding in 2018 to rework the plant to construct electrical fashions.
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Nevertheless, increased rates of interest and fewer subsidies are resulting in diminishing demand for the VW model. Volkswagen lower round 300 staff from its Dresden plant on the finish of October, citing slowing orders.
The information comes after VW already deliberate to close down a manufacturing line at Zwickau over the vacations as a result of low demand.
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Though electrical automotive deliveries rose 45% within the first 9 months of the 12 months, the corporate’s CFO, Arno Antilitz, mentioned EV orders in Europe have been all the way down to 150,000. That’s 50% fewer than final 12 months’s complete of 300,000.
VW’s EV gross sales share reached 9% within the third quarter, placing it on observe to hit its aim of 8%-10% in 2023.
Electrek’s Take
Though many headlines are pushing slowing EV demand as a result of automakers like Volkswagen, Ford, and GM delaying manufacturing and EV targets, that’s not precisely the case.
Increased rates of interest, mixed with Tesla’s drastic value cuts this 12 months, are making it powerful for opponents to maintain up.
Tesla’s Mannequin Y remained the best-selling automotive (fuel or electrical) in September on its option to turning into the top-selling automobile globally this 12 months.
Tesla had a head begin and is utilizing it to its benefit with increased volumes. By driving down costs, the EV chief is making it difficult for rivals to compete.
In the meantime, Europe accounted for 61% of VW electrical fashions offered by means of September. In second was China, the corporate’s largest marketplace for earnings. Though deliveries have been up barely (+4%) in China, Antilitz mentioned VW may lose market share till new EV fashions with XPeng roll out.
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