Volkswagen revealed on Friday that it will temporarily halt production at two of its electric vehicle plants in Germany, underscoring persistent difficulties within the nation’s automotive sector.
Beginning October 6, the company will shut down production for one week at its Zwickau plant, which manufactures six EV models for VW, Audi, and Cupra, citing sluggish demand across Europe and pricing pressures linked to U.S. tariffs.
Meanwhile, Volkswagen’s Emden plant in Germany, responsible for producing the ID.4 and ID.7 electric vehicles, has scaled back working hours and will halt production lines for several days.
This isn’t the first time Volkswagen Group has scaled back its EV production in Europe. The Zwickau plant, which was transformed into a dedicated electric vehicle facility, has faced multiple temporary shutdowns. Located in Saxony, the Zwickau factory transitioned fully to EV manufacturing in 2020, marking the end of combustion engine production after 116 years. The site also holds historical significance, having produced the iconic Trabant car prior to German reunification.
“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,” a VW spokesperson said.
The production pause is part of Volkswagen’s wider restructuring strategy launched last year. As part of an agreement with labor representatives, the company aims to lower factory expenses and cut 35,000 jobs by the end of the decade while maintaining operations at key sites. Despite the current slowdown in output, the deal safeguards jobs at the Emden and Zwickau plants. These recent adjustments reflect the broader difficulties automakers face in balancing production capacity amid fluctuating EV demand across different markets.
Volkswagen’s ID lineup ranks among the top-selling electric vehicles in the EU, but the smaller ID.4 has been particularly affected by the steep tariffs introduced by U.S. President Donald Trump. According to the company, nearly one in every two electric vehicles registered globally from the Volkswagen Group is produced at the Zwickau plant.
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