VW Scales Back EV Output Due to Slow Demand, Yet It Remains Europe’s EV Leader

[Source: Automotive News Europe]

Volkswagen Group pauses production at German factories that build VW, Audi and Cupra battery-electric cars. According to a report from Automotive News Europe, the halt in production is due to a combination of low EV demand and U.S. tariffs. However, the news is not all bad as VW Group continues to be the top seller of EVs in Europe.

The VW factory in Zwickau will halt production for a week starting October 6, due to weak demand for the Audi Q4 E-tron. The soft demand is due to a double whammy being delt to the all-electric SUV. It is being hit by U.S. tariffs and Germany’s push to soften the European Union’s ban on new combustion-engine car sales.

Despite Slowdown, VW Group Remains EV Leader

At VW’s Dresden plant, work will also stop during the first week of the autumn holidays in October. “The company is adjusting its production schedule to the current market situation,” said a VW Group spokesperson. It is also being reported that VW’s Emden plant, which builds the VW ID4 and ID7, has cut back employee hours and is also expected to shut down factory lines for several days.

Yet despite the news of a production slowdown there is a silver lining when it comes to VW Group’s EV sales. For the month of August, the brand was once again the top seller of EVs in Europe, beating out Tesla. However, the overall growth rate for EV sales is slower than expected and that is leaving factories with excess capacity.

The Hanover plant that builds the ID Buzz and T7 Multivan will have a production halt for five days during autumn holidays. VW’s Osnabrueck plant is shortening each production week by at least one day through year-end and will add a shutdown week in October as cabriolet demand remains soft, German business newspaper Frankfurter Allgemeine Zeitung reported.

VW Group is not alone as many automakers are adjusting to the broader EV market conditions. However, being the EV sales leader is a good sign for the automaker. In addition, we have heard the Audi CEO say recently that he believes that EVs can be exciting as technology such as virtual gearboxes and synthetic engine sounds come online.

Audi is adjusting their EV build schedule now, but the combination of being the EV sales leader in Europe and the promise of more exciting EVs in the future is reason for optimism.