Volkswagen has cancelled plans to build its all-electric ID. 3 at its main plant in Wolfsburg, Germany, due to weak demand, adding that “every euro we have to spend counts”. Production will take place at its committed electric vehicle plant, where it has been cutting jobs for months.
Volkswagen had planned to build its ID3 BEV sedan at the Wolfsburg plant, but says weak demand will keep production going at the automaker’s electric vehicle plant in Zwickau, eastern Germany, German newspaper Handelsblatt reports.
“Every euro we don’t have to spend counts,” said Christian Vollmer, VW’s head of production. “For this reason, we must continue to consolidate the volume of the ID3 in Zwickau and make efficient use of the already fully supplied area. The company has been cutting staff in Zwickau for months due to what it calls “slow demand. “
Meanwhile, the automaker will produce combustion engine and plug-in hybrid vehicles, such as the Golf and Tiguan, in Wolfsburg for the time being.
“These are all forged models that will keep the plant running,” Vollmer said. “I am confident that this year we will exceed 500,000 cars produced at the main plant for the first time in a long time. “, VW delivered 140,800 ID3s, reports Automotive News Europe.
Last year, the VW Group also announced a cost-cutting program aimed at saving 10 billion euros ($10. 8 billion) by 2026, which will see the company cut thousands of jobs. The goal is to return to the sales target of 6. 5%, up from 3. 6% last year, according to Reuters.
VW had planned to ramp up surplus production of the ID2 at its main plant, and small-scale production first started late last year.
At the same time, the ID3 will also continue to be manufactured at VW’s plant in Dresden, where it is manufactured in small quantities. Renault showed last month that it is in talks with Volkswagen to build a BEV minicar for the European market. Volkswagen and Chinese electric vehicle manufacturer Xpeng have also announced that they will jointly expand two mid-size BEVs by 2026 in mainland China, with the first style being an SUV.
Jennifer is an editor at Electrek. Based in France, she worked in the past at Wired, Fast Company, and Agence France-Presse. Send them comments, suggestions, or recommendations via X (@JMossalgue) or jennifer@9to5mac. com.