Volkswagen Group’s electrical automobile demand points in Europe look like piling up and require extra changes on the manufacturing websites in Germany.
After a number of reviews about some manufacturing discount on the Emden plant, upcoming employment cuts in Zwickau, in addition to potential finish of manufacturing in Dresden, new reviews from Germany point out that additional manufacturing cuts are wanted to steadiness provide with demand.
In accordance with Reuters, the Volkswagen Group will droop manufacturing of the Volkswagen ID.3 and Cupra Born at its Zwickau and Dresden crops in Germany for the primary two weeks of October (throughout the autumn holidays in Saxony from October 2 to October 13).
The 2 MEB-based fashions are produced in Zwickau (moreover, the ID.3 is produced on a comparatively small scale within the Clear Manufacturing unit in Dresden), however demand is simply too weak to keep up the present manufacturing output.
It is price noting that 4 different MEB-based fashions produced in Zwickau – the Volkswagen ID.4, and ID.5, in addition to Audi This fall e-tron/ Audi This fall Sportback e-tron – will proceed to be produced in three-shift operation. In different phrases, the demand challenge appears to be extra associated to compact hatchback EVs fairly than crossover/SUVs.
The article confirms that, no less than within the case of the Dresden plant, manufacturing will resume on October 16. We guess that it will likely be the identical in Zwickau.
Nonetheless, short-term manufacturing cuts will not be an answer. The second Reuters’ article reveals the Volkswagen Group may solely terminate three-shift manufacturing on the Zwickau plant as a result of it is not capable of promote as many vehicles because the plant is ready to supply (some 330,000 yearly – six fashions whole). In 2022, manufacturing amounted to 218,000.
The settlement has been in place since 1991. The electrification plan, launched a number of years in the past when the manufacturing unit was reworked from 100% ICE to 100% EV manufacturing, assumed that manufacturing and employment would proceed at full capability.
Right now, we hear that the corporate is negotiating a brand new manufacturing settlement with employees in Zwickau and probably will terminate the third shift as quickly as 2024. The corporate’s spokesperson mentioned: “The goal is to succeed in a brand new settlement, collectively supported by the corporate and the workers, which takes into consideration the present market scenario and ensures the financial viability of the positioning.”
Nicely, we’ll see how this develops, but it surely’s already clear that no less than in some segments, issues will not be progressing as easily as initially anticipated, even supposing the all-electric market, as an entire, is rising each globally and in Europe.