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Volkswagen cuts EV production at Emden factory, blames poor demand

Volkswagen had to halt multiple assembly lines at its industrial complex in Emden, Germany, for six weeks due to overproduction of the all-electric ID.4 SUV.

The same lines were going to be used to churn out the ID.7 sedan (see video). Its future is hanging in the air now that VW had to terminate employment contracts with 300 factory workers. While the cause was never directly named, everything around the situation screams ‘sales crisis’.

Indeed, in a recent communication with the authorities, Volkswagen AG has pointed out a steady decline in EV demand throughout the entire market and called upon governments to slash VAT (value-added tax) values for EVs. It also pleaded for the authorities to introduce more incentives targeting EV buyers to stabilize the situation. Within the context of this cry for help, it is not surprising that the Emden production was partially shut down.

 

June 28, 2023

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