Volkswagen Temporarily Cuts EV Production at German Plants Amid Slowing Demand

Volkswagen is scaling back electric vehicle (EV) production in Germany, announcing temporary shutdowns and reduced shifts at several of its key factories. The decision was made because of both weaker-than-expected demand for battery-powered cars and mounting pressure from global trade policies. Production Pauses in Zwickau and Emden The company confirmed that its Zwickau facility, which exclusively produces electric vehicles for Volkswagen, Audi, and Cupra, will suspend operations for one week starting October 6. The plant has faced sluggish demand for the Audi Q4 e-tron, a model particularly impacted by U.S. tariffs and the ongoing debate in Germany about softening the European Union’s 2035 ban on combustion-engine sales. Volkswagen’s Emden plant, located on Germany’s northern coast and responsible for building the ID.4 and ID.7, has also scaled back working hours. Sources that spoke with Bloomberg indicate the factory is expected to stop production lines for several days in the coming weeks. Together, the two sites represent the heart of VW’s EV rollout and are now especially vulnerable to fluctuations in market appetite for fully electric models. Broader Adjustments Across German Operations The production slowdown isn’t limited to Zwickau and Emden. Volkswagen is also adjusting shifts in Dresden and shortening the working week at its Osnabrück plant. Meanwhile, the company’s Wolfsburg facility — the historic home of VW’s combustion-engine vehicles — will add extra weekend shifts to meet demand for traditional models. In a statement, a VW spokesperson said: “Volkswagen is adjusting the production program at its plants to match current customer demand for the models built there. In some plants, this will lead to shift cancellations in the coming weeks, while in others it will result in additional shifts.” EV Sales Growth Slows Across Europe The decision underscores a broader challenge facing the European auto industry. While EV sales are growing, the pace is slower than anticipated. According to the European Automobile Manufacturers’ Association, 16% of new car sales in the region are electric, compared to 37% for hybrids. Consumer concerns over charging infrastructure and range limitations remain significant hurdles. Volkswagen’s CEO Oliver Blume recently acknowledged the industry is undergoing “massive changes” and experiencing “a clear drop in demand for battery-electric cars.” Challenges Ahead The production cuts come less than a year after Volkswagen reached a restructuring agreement with labour leaders to reduce factory costs and eliminate 35,000 jobs by 2030. The deal secured employment at Emden and Zwickau but highlighted the need for flexibility as the company balances excess capacity with uncertain demand. Despite Volkswagen’s ID lineup ranking among Europe’s best-selling EVs, models like the ID.4 remain particularly exposed to trade tariffs and competitive pressures. With European governments reassessing their EV strategies and consumer demand proving uneven, VW’s production adjustments could signal more turbulence ahead in the continent’s shift to electric mobility.