Volkswagen has canceled its production plans for the electric vehicle model ID.3 at its main factory in Wolfsburg, Germany, due to low demand. For now, the company will continue production at its Zwickau factory, which is dedicated exclusively to fully electric vehicles.
Volkswagen cancels ID.3 electric vehicle production plans at main factory
VW’s head of production, Christian Vollmer, stated: “Every euro we don’t have to spend is important, so we decided to increase ID3 volume at Zwickau and continue to use the already fully equipped facility efficiently.” The company has been reducing shifts at Zwickau for months due to “slow demand.”
Volkswagen will continue to produce internal combustion engine (ICE) and plug-in hybrid vehicles at the Wolfsburg factory. Models like the Golf and Tiguan are expected to contribute to over 500,000 vehicle productions at the factory this year.
All these are described as strong models that will ensure good utilization of the plant. According to Automotive News Europe, VW delivered 140,800 ID.3 units in 2023.
The VW Group has launched a cost-cutting program aiming to save 10 billion euros by 2026 and plans to cut thousands of jobs under this initiative. The company’s profit target from sales has been increased from 3.6% last year to 6.5%.
These developments indicate changes in the demand for electric vehicles and the strategies of manufacturers. Volkswagen’s decision reflects changes in the company’s financial and operational priorities and appears to influence future steps regarding electric vehicles.
Why do you think electric cars are not catching on enough? Is battery technology development not yet ready for electric vehicle production? Feel free to share your views.
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