VW stops production: Zwickau and Dresden shut down for a week!

VW stops production: Zwickau and Dresden shut down for a week!

The automobile giant Volkswagen is currently bringing its production in Zwickau and Dresden to a standstill. How Blick.de reported, production in these factories will be paused for a week from October 6th. The reason? Weak demand for electric vehicles is forcing the company to take action. It's not just Zwickau that is affected - production cuts are also on the agenda in Lower Saxony, especially in Osnabrück and Emden.

Measures have already been taken in Osnabrück that provide for a weekly closing day until the end of the year and an additional week off in October. The Emden factories are also faced with possible closing days, which are currently still being negotiated with the works council Tagesschau.de.

Causes of production stoppages

The reasons for these drastic measures are complex. In addition to the general weak demand for electric cars, Europe's sales figures are under pressure. While the global market for electromobility, according to Fraunhofer ISI, has grown by almost 10% overall, Europe is facing a decline. Compared to the previous year, BEV sales fell by 6% and plug-in hybrid sales fell by 5%. This may come as a surprise, as the electric vehicle market is booming in China - around 7 million BEVs and 5 million PHEVs were sold there in 2024.

Back to Volkswagen: While electric car production is stagnating in Zwickau and Dresden, everything is going differently at the main plant in Wolfsburg. A special shift is worked there almost every weekend in order to meet the high demand for combustion engine models such as the Golf, Tiguan and Tayron. These models enjoy unbroken popularity and give VW the motivation it needs to do good business even in times of crisis.

A look forward

The current difficult situation raises questions as to whether electromobility can turn things around at Volkswagen. While demand for electric cars is weakening in Europe, China continues to dominate the market. The country has achieved a clear leadership position in the field of e-mobility through government incentives and a comprehensive charging infrastructure.

All that remains for Volkswagen is to hope that the sales trends will change again soon. Because it's not just Zwickau and Dresden that are in the firing line - the entire direction of the group depends on future demand for electric vehicles. Until then, the situation at the production sites will have to continue to develop.