Volkswagen Forced to Shut Down Two German Factories

CRISIS: Volkswagen has announced the temporary suspension of production in two of its German factories dedicated to 100% electric vehicles

wo factories shut down for Volkswagen. The sites concerned assemble the group’s most emblematic electric models: the Volkswagen ID.3, ID.5, are produced in Zwickau Audi Q4 e-tron or even Cupra Born, while the Dresden factory specializes in ID.3. Volkswagen cites weaker-than-expected demand to justify these temporary shutdowns: a necessary adjustment to avoid costly inventory buildup.

These stops illustrate the fragility of the transition that the manufacturer must make: despite massive investments in electricity, sales do not always follow the expected pace. In Europe, buyers are hesitating between thermal engines hybrids or electric, and Asian competition is particularly aggressive in the electric segment.

An electricity market at half mast, a strategy on hold

Furthermore, the Emden factory, which produces the Volkswagen ID.4 and ID.7, are already experiencing schedule reductions and could experience additional days of closure in the coming weeks. German equipment manufacturer Bosch, a major partner of the automotive industry, also plans to cut 13,000 jobs due to falling demand for electric cars, illustrating the impact of the crisis on the entire chain production.

This episode reveals a major dilemma for manufacturers: how to reconcile energy transition and industrial viability? For Volkswagen, the issue is both economic and symbolic – prove that its bet on electric power can withstand the market crisis.