Volkswagen Cuts EV Production, Cancels New Wolfsburg Factory

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Volkswagen announced this week a new plan for the production of electric vehicles that does not include building a new factory.

Volkswagen has reduced the output of electric cars at its German factories and has cancelled plans to build a new $2 billion factory in Wolfsburg, according to a report from. Is this good news, bad news, or just news? Let’s dig into both stories to see if we can find some answers to those questions.

Production of the Volkswagen ID.3 and Cupra Born electric models will be dialed back at the company’s main EV factory in Zwickau until October 16, a spokesperson said. Assembly of the ID.3 at the Glass Factory in Dresden will cease for the first two weeks of October. Volkswagen said earlier this month it will be letting 269 temporary workers in Zwickau go once their one-year contracts expire.When Herbert Diess was running the show as head of Volkswagen Group, he talked often of his plans for a new electric car architecture he called Trinity, and said the company would build a new $2 billion factory in Wolfsburg that would rival the efficiency and productivity of the Tesla factory in Grünheide.

Christian Vollmer, the Volkswagen brand Board of Management member for production and a member of the Extended Executive Committee for Production, added, “We are using the transition to electromobility as an opportunity to reduce the complexity of our production operations and increase the efficiency of our plants even further. We are systematically bundling vehicles based on the same architecture across all brands in our plants.

 

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