Volkswagen Faces Headwinds In EV Market: Emden Plant Manufacturing Diminished

A bit of Volkswagen’s Emden plant within the northwest of Germany will stay closed for six weeks, in line with a brand new report. Manufacturing facility employees on the electrical car traces will get an prolonged one-month summer time break, and one shift will likely be canceled for 2 weeks.

The data was supplied by Manfred Wulff, Emden plant’s head of the works council, to the German Press Company and Nordwest Zeitung (North West newspaper).

Affected fashions embrace the ID.4 electrical SUV and the upcoming ID.7 electrical sedan. We reviewed the ID.7 in April this yr. Manufacturing of combustion-engined fashions, together with the Passat, will stay unaffected.

Wulff additionally introduced a discount within the variety of plant employees. 300 of the 1500 momentary employees is not going to have their contracts renewed in August 2023. The workforce discount and prolonged holidays level to 1 conclusion: it’s a gross sales disaster.

Demand for EVs is down by 30 %, in comparison with authentic manufacturing figures. Furthermore, potential EV patrons are displaying indicators of reluctance, Wulff informed Nordwest Zeitung. Manufacturing of the ID.7, initially slated for July 2023, has been pushed again to later this yr.

Olaf Lies, the minister of financial affairs for the state of Decrease Saxony, informed the newspaper that Volkswagen’s choices in Emden had been “comprehensible.” To counter the gross sales stoop, he known as for a discount in value-added tax (VAT) and extra EV incentives.

Volkswagen Group gross sales had been up by 68 % in Europe in Q1 2023 yr over yr, whereas US gross sales elevated by a exceptional 98 %. Nonetheless, China gross sales had been down by a worrying 25 %, as it’s VW Group’s largest market, and likewise the largest plug-in automobile market by quantity on the earth.

Volkswagen introduced final yr that it had deliberate to speculate almost $1.1 billion in changing and retooling the Emden plant for MEB platform-based electrical vehicles. It employs 8,000 employees on the facility.

The model makes electrical vehicles at a number of websites throughout the globe, 4 of that are in Germany: Emden, Hanover, Dresden, and Zwickau. Its worldwide EV crops, the place primarily the favored ID.4 is made, are positioned within the cities of Anting and Foshan in China, and Chattanooga, Tennessee within the US.