Volkswagen Pauses EV Production at Two German Plants Amid Slower Demand

Volkswagen AG is cutting output and planning temporary shutdowns at two of its German electric vehicle plants as EV demand grows at a weaker pace than expected.

The Zwickau factory will halt production for a week in October due to low demand for the Audi Q4 e-tron, while the Emden facility has reduced employee hours and may also stop lines for several days.

Zwickau and Emden hit by weaker EV sales

The Zwickau site, which builds several models for VW’s premium brands, is pausing operations starting Oct. 6 as the Audi Q4 e-tron faces headwinds from new U.S. tariffs and debates in Germany over easing the European Union’s combustion engine phase-out, according to Bloomberg News.

Meanwhile, the Emden plant, home to production of the ID.4 and ID.7, has already scaled back staffing levels. Both factories manufacture EVs exclusively, leaving them more exposed to short-term shifts in consumer demand compared to VW’s mixed-production sites.

Balancing capacity with long-term restructuring

Volkswagen’s EV volumes in Europe are still climbing, but at a slower and less consistent pace than projected, leaving the automaker with excess production capacity. The Emden and Zwickau facilities were included in VW’s wide-ranging restructuring plan last year, which aims to reduce factory costs and cut 35,000 jobs globally by 2030.

Under the agreement, the two sites were guaranteed job security, even as VW works to adjust operations to market realities. Industry watchers note that balancing capacity with demand will remain a challenge as the European EV transition faces both political and economic uncertainties.

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