VW cuts internal combustion engine production lines due to high demand for electric cars

Image: VW

Volkswagen is adjusting its production plans due to rising demand for electric cars, according to Automobilwoche. As a result, planned special shifts for internal combustion engine models are being canceled at the main Wolfsburg plant. This means annual production is expected to remain around 580,000 vehicles instead of the originally targeted over 600,000 units.

"Demand for battery electric vehicles is rising significantly in Germany and other European countries," said Sales Director Martin Sander to Automobilwoche. He views this as an important "turning point in the transformation of the automotive market," attributing it in part to high prices for gasoline and diesel. This, however, also means lower demand for vehicles with internal combustion engines, so plans at the factories are being adjusted accordingly.

While engine production in Wolfsburg is being reduced, the capacity utilization at the all-electric factories in Emden and Zwickau is increasing. According to the report, Emden plans to operate at least two extra shifts for the ID.7, which is available as a sedan and station wagon in the upper mid-range segment. The mid-size SUV ID.4 is also produced there, ahead of an update and name change to ID. Tiguan. In Zwickau, strong orders for the compact car ID.3 Neo and the mid-range electric vehicle Audi Q4 e-tron, available as a SUV and SUV coupe, are boosting capacity utilization.

Volkswagen Group is responding to a changed market situation, as the growth of electric mobility is progressing more rapidly than expected for this year. Meanwhile, the future of several German production sites is under discussion, including the plants in Hannover and Neckarsulm, as well as the long-term plans for Emden and Zwickau starting in the 2030s.

A large portion of orders consist of new electric compact cars in various formats from Spanish manufacturing plants. According to the group’s figures, there are over 100,000 pre-orders for the VW ID. Polo, Cupra Raval, VW ID. Cross, and Škoda Epiq models, with more than 40,000 orders alone for the electric Polo. As reported by Automobilwoche, in Germany, Volkswagen currently receives more orders for pure electric vehicles than for gasoline-powered models. However, the profit per electric car is lower than that of comparable combustion engine vehicles.

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Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric cars, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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