VW-Zwickau in crisis: Chip shortage brings electric car production to a standstill!

VW-Zwickau in crisis: Chip shortage brings electric car production to a standstill!

The air has become thin in the automotive industry. The sales crisis does not stop even at the most renowned manufacturers. This is also the case in Zwickau, one of the flagship locations of the Volkswagen Group, where the electric car factory is currently suffering a severe setback. Despite the efforts of VW CEO Oliver Blume, who wants to personally take care of the site's concerns, the situation turns out to be tense. As Welt reports, the Saxon Prime Minister Michael Kretschmer is optimistic about the future of VW in Zwickau and at the same time is calling for support from the unions and federal politics.

The Zwickau location is not only known for the production of electric vehicles for VW, Audi and Cupra, but has also established itself as a leader in the switch to e-mobility. With around 9,200 employees, production is currently only carried out in two shifts. But demand for electric cars is not developing as hoped, and competition from China is getting stronger. Models such as the VW ID.3 and ID.4, which are manufactured here, are to be delivered to other VW locations in a timely manner in order to increase capacity utilization.

Chip crisis as a major challenge

The situation is not made any easier by the current chip shortages that are causing problems for the auto industry. As Auto Motor und Sport reports, production of the VW Golf had to be completely stopped on Wednesday, October 29, 2025. Shortly afterwards, production for the VW Tiguan came to a halt, triggered by failures in semiconductor deliveries from the manufacturer Nexperia, which are crucial for central vehicle functions.

This production stop will have serious consequences for the Zwickau factory, as it will have to go into short-time work from next Wednesday. This will mean an uncertain time for many of the 9,200 employees, as it is unclear when and to what extent production can be restarted. Management has already announced a gradual halt in additional plants to deal with the situation.

A look into the future

Despite this shaky situation, which is further fueled by the trade conflict between China and the USA, VW site manager Danny Auerswald remains optimistic and speaks out against site closures by 2030. The development of new business areas in the circular economy for the recovery of raw materials is also on the agenda. In addition, Economics Minister Dirk Panter (SPD) emphasizes the need to reduce Europe's dependence on future technologies.

The challenges are great, but the automotive industry in Germany is known for its innovative strength and flexibility. The coming weeks will decide how quickly VW and other manufacturers can react to the current chip crisis. The situation is being closely monitored by both VW and other manufacturers. An escalation could affect not only local production, but the entire industry. VW leadership is under pressure to find a solution that not only addresses current needs, but also lays the foundation for a sustainable future.