VW Stops Production of the Golf Due to Lack of Demand

Finance
VW stops production of the Golf for the moment

>he WLTP approval tests have confused production at VW. Now even the sale of the top model is stalled.

Dusseldorf –  At Volkswagen , the next compulsory break is in production. In the first week of October, production at the parent plant in Wolfsburg is expected to completely rest. As it is said from business circles, a relatively weak demand for golf is responsible for the production stop.

The forced break is likely to be officially decided in the coming week. The company had already approached the works council with his proposal .

Volkswagen – and especially the main plant in Wolfsburg – is experiencing a very restless production schedule in the second half of the year. The biggest unrest factor is the new exhaust and consumption tests according to the WLTP standard . The VW Group has not certified all models in time for the deadline September 1. Cars without WLTP approval may no longer be sold, so the production of these vehicles is not worthwhile either.

Accordingly, VW has cut production plans for August and September. In Wolfsburg is therefore in these two summer months throughout a four-day week, as a rule, the Fridays are free of work – with unchanged pay of employees. Volkswagen hopes that in the meantime, more models will get the WLTP approval and so gradually production can be ramped up.

The new compulsory break in October is now added. However, the WLTP problems are not responsible for this. Sales difficulties are currently in the Gulf, reported from the company. Accordingly, Volkswagen wants to let the production rest for a whole week and adjust it to the weaker demand. The group did not want to comment on request.

The current Golf model is getting old. It is expected that there will be a successor to the dealers at the end of 2019. In the auto industry, demand cycles are something completely normal. Demand is greatest when the car is about to hit the market. Six to seven years will take a model cycle in the auto industry; The current Golf model is slowly reaching the end of its life cycle.

After the forced break at the beginning of October, production at the Wolfsburg headquarters is slowly returning to normal. After that there will only be a few closing days because of the WLTP problems. The Group also hopes that part of the lost production can be made up for in the fourth quarter.



At the moment, three additional shifts are being discussed for the compact Tiguan SUV. In addition to the Golf, the Tiguan is the second mainstay for the Wolfsburg plant. Works council chief Bernd Osterloh had repeatedly appealed to the board to tackle the problems with the WLTP standards more quickly.

“The closing days did not cause any joy among colleagues. Many wonder why we are so late at WLTP, “Osterloh said in a joint interview with CEO Herbert Diess on Wednesday.

Not only in Wolfsburg VW has problems with the utilization of production. The factory in Emden also produces significantly fewer vehicles than planned. The factory in Ostfriesland produces first and foremost the mid-range model Passat. These limousines – and this applies to the entire car industry – are being bought less and less. The workforce in Emden hopes that the factory will be awarded the production of another model, preferably an SUV.

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