The Volkswagen Group is facing some challenges in its European EV production as it announces the temporary shutdown of several production lines next month. This decision comes as European-built EVs destined for the U.S. market are being impacted by import tariffs and slower-than-expected sales growth in Europe.
According to a report by Bloomberg, European production of the Audi Q4 E-Tron, Volkswagen ID.4, and Volkswagen ID.7 electric cars will be affected in the coming weeks. The Volkswagen Group factory in Zwickau, Germany, will halt production of the Audi Q4 E-Tron for a week starting October 6 due to weak demand in Europe and pricing complications arising from U.S. tariffs. This factory also manufactures the Volkswagen ID.3, ID.4, and ID.5, as well as the Seat Cupra Born.
Similarly, the automaker’s factory in Emden, Germany, which produces the ID.4 and ID.7 passenger EVs, has reduced employee hours and is expected to shut down lines for several days. This reduction in EV production is not new for the Volkswagen Group, as the Zwickau factory has experienced temporary line closures multiple times.
Despite a rebound in EV sales and Volkswagen’s position as the segment leader in Europe, with a diversified portfolio of models and software updates addressing initial issues reported by ID.3 and ID.4 owners, the company is still facing challenges. Volkswagen recently surpassed Tesla as the best-selling electric car brand in Europe, but its sales figures, with just over 16,000 units sold last month, are not meeting expectations.
The decision to temporarily idle two EV factories reflects the company’s efforts to optimize production in response to market dynamics. As Volkswagen continues to navigate the evolving landscape of electric mobility, it remains committed to delivering high-quality EVs to customers worldwide.