Volkswagen cuts electric-car production amid drop in demand – report
Volkswagen, a renowned automobile manufacturer, has decided to halt the manufacturing of its electric vehicles for a brief period. This decision is a result of the hesitation shown by customers and a noteworthy 30% decrease in demand compared to the initially projected figures. In the meantime, it is important to note that the debut of Volkswagen's initial electric car in Australia is still awaiting completion, with an estimated waiting period ranging from half a year to a full year.
Volkswagen, a prominent automobile company hailing from Germany, has curbed the manufacturing of its electric cars in Europe owing to a decline in consumer interest, falling short of initial predictions.
According to Autocar, a magazine from the United Kingdom, Volkswagen has decided to suspend a period of work for a fortnight at the German production facility responsible for manufacturing the ID.4 electric SUV. Additionally, the company has extended the vacation time for the workers on the assembly line of the ID.4 model by an extra week.
The steps are linked to a decrease in the desire for electric automobiles because of a reduction in customer demand that is reportedly 30 percent below the projected production, as stated by Manfred Wulff, the chairman of the factory's employee council.
According to Autocar, Mr. Wulff informed the North West newspaper in Germany about the significant hesitancy observed among customers in the electric vehicle industry.
In spite of the decrease in interest, Australia is still eagerly anticipating the availability of Volkswagen's electric vehicles. However, the first model, the ID.4, is not expected to arrive for another six to 12 months, making it three years since its initial release in Europe.
According to reports, Volkswagen's main headquarters seems to have given preference to manufacturing electric cars for the European market. This is because European car manufacturers face penalties if they fail to meet stringent regulations regarding their fleet's emissions. Unfortunately, Australia lacks such regulations, which has resulted in VW placing our market lower on their list of priorities.
Autocar reports that the commencement of manufacturing for the Volkswagen ID.7 electric sedan has experienced a delay, shifting from its initial schedule in July 2023 to a more vague timeframe of "later this year". This alteration has been attributed to the implementation of production curtailments.
An ID.4 factory representative located in Emden, where VW also manufactures the conventional Passat without any impact from the reduced production of electric cars, conveyed to Autocar that they firmly believe the utilization of the facility will rise once more upon the release of the ID.7 later this year.
Around 300 out of the total 1500 temporary employees who are currently hired at the German factory will not have their contracts extended after they come to an end in August, as stated by Autocar.
Volkswagen has poured a significant sum of €1 billion ($AU1.6 billion) into the production of electric vehicles at the Emden factory. To make room for an increased number of electric cars, the upcoming generation of Passat models will be manufactured in Slovakia.
According to a report in Germany's North West newspaper, Olaf Lies, who serves as the Minister of Economic Affairs for Lower Saxony, where the Emden factory is situated, expressed his concern about the decrease in demand for not just Volkswagen, but all car manufacturers, despite the still impressive numbers of registered electric vehicles.
Alex Misoyannis began his car writing journey in 2017 by establishing his own website, Redline. He later contributed for Drive in 2018 and eventually joined CarAdvice in 2019. In 2020, he became a valued journalist for the news team. Cars have always been a significant part of Alex's life, from his early days of leafing through car magazines to his upbringing in a family that shares a deep passion for performance vehicles.
Discover additional information regarding Alex Misoyannis. Learn more about Alex Misoyannis. Find out more about Alex Misoyannis. Explore further details about Alex Misoyannis. Obtain further insight into Alex Misoyannis. Delve deeper into Alex Misoyannis' background. Gather more knowledge about Alex Misoyannis. Acquire additional facts about Alex Misoyannis.
