2023-06-28 11:30:00
The Volkswagen plant in Emden will be idling in the coming weeks © Volkswagen
Volkswagen will reduce its production teams in some factories this summer. Some are worried regarding a drop in demand for electric vehicles, in particular.
The warning signals on the general drop in orders in Europe are multiplying. Again, on the other side of the Rhine, a large industrialist is wondering if there will be enough customers to meet the planned production to meet the sometimes very ambitious sales targets for electric cars. This industrialist is Volkswagen, which will also reduce its teams this summer to, it seems, cope with a drop in orders. But Volkswagen is not alone. It would rather be a cyclical situation, between still high inflation and high prices of these vehicles.
Everybody is concerned
The fall in demand comes at the wrong time, while the ID.7 will be launched in Europe© DR
“What worries us is the current drop in demand – not just from Volkswagen, but from all manufacturers“, commented yesterday Olaf Lies, the Minister of Economy of Lower Saxony, Land where there are several production plants, in particular at Volkswagen. Same story at Volkswagen: “we notice the reluctance of customers for electric vehicles“, with a demand that would be 30% lower than production. This therefore worries both the group, but also the politicians who are already seeing forced unemployment pointing in. Several hundred temporary workers will not be taken over this summer and the extension of production will eventually be canceled in Emden, where in particular the ID.4 is produced. Which will soon be followed by the ID.7.
The public authorities would therefore like to draw once more the magic recipe of purchase aid to restart demand. But this will revive the debate on the “distorted” growth of the electric market, helped by bonuses of all kinds.
Is the ID.4 struggling to sell? Volkswagen cuts production in Germany© Volkswagen
Will the Volkswagen ID.7 be able to sustain sales volumes? © DR
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