If the sales of the Volkswagen group are in good shape internationally, the results of the ID. 4, its electric sedan, are rather disappointing. Faced with this failure, the manufacturer decided to reduce production of the ID. 4, but also that of the ID. 7, at the German plant in Emdem.
While Renault announced in early June 2023 the suspension of production of the Zoé, for lack of electronic components, it is the turn of Volkswagen to cut back.
Indeed, the manufacturer has just confirmed thea closure of part of the German plant in Emdem for six weeks this summer. Workers on the electric car production lines will enjoy an extended month-long summer break while the workforce will be considerably reduced for two weeks.
Volkswagen is cutting production of its electric cars
The information was communicated by Manfred Wulff, head of the works council of the Emdem plant, to the German press agency. In addition, the forces present will also be reduced. Of the 1,500 fixed-term contracts in activity, nearly 300 contracts will not be renewed in August 2023.
As our colleagues from the InsideEVs site report, this slowdown in production will directly affect the manufacture of the ID.4 electric SUV, but also that of the ID. 7, the manufacturer’s future “watted” sedan and competitor of the Tesla Model 3. On the other hand, the production lines of thermal models, such as the Passat, are not affected.
Blame it on disappointing sales
Note that unlike Renault, the shortage of electronic components is not the reason for this decision. In effect, Volkswagen faces sales slump, in particular on the ID. 4. Demand would have fallen by 30% compared to initial estimates. As a precaution, the German firm has also decided to postpone the start of production of the ID. 7 at the end of the yearcompared to July 2023 at the start.
Lower Saxony’s economic affairs minister Olaf Lies told German media that Volkswagen’s choice was “understandable”. To try to remedy this situation, the politician calls for a reduction in VAT as well as the introduction of additional incentives for the production and sale of electric cars.
Solid performance in the USA, worrying in China
However, it should be noted that Volkswagen’s international sales are doing quite well. The brand registers an increase in sales of around 68% in Europe in the 1st quarter of 2023, while the manufacturer’s popularity exploded in the United States (+98%). And again, these numbers should look even better with the arrival of the ID. Buzz 7 seats from 2024.
On the other hand, Volkswagen is in difficulty on the Chinese market, with a drop in registrations of 25%. A significant and worrying setback in the German group’s main market.
Source : InsideEVs