German VW factories adapt amid e‑car demand slump and changing labour conditions
VW in Germany intends to make changes to its plants in the near future. As reported by Businessinsider.de, in 2025 and 2026, the company plans to suspend an agreement allowing a choice between receiving additional pay or extra days off. This could potentially force some of the staff to take time off work.
Germany: Some VW factories decelerate, others boost production
German media report that changes in factory operations have already taken place. The Wolfsburg facility, responsible for the production of the Golf and Tiguan among others, is scheduling additional shifts. Meanwhile, in Emden, where the Passat and ID.7 are manufactured, production will be halted for two days each week.
So what's the reason behind the automotive giant's decision? Simply put, the law of demand. The Wolfsburg factory produces not only the popular Golf but also the Skoda Superb (which is similarly produced in Bratislava, Slovakia). Both models are generating substantial interest. However, the Passat and ID.7 models are not as favoured.
The struggles facing the assembly line in Emden are not unexpected. As far back as June, it became clear that the demand for electric cars produced at the factory was almost 30 percent less than originally planned. Similar issues led VW to amend its original plans for the Dresden factory, where the ID.3 is manufactured.
Chinese electric vehicles pose a problem for Germany
"The Economist" points out that, as per press reports, orders for electric vehicles from the group are between 30 percent to 70 percent less than expected. The company struggles with software issues, and in the rapidly developing Chinese electric vehicle market, Volkswagen's share is only 2 percent.
Meanwhile, Chinese producers of electric vehicles are extending their market reach into Europe. Already, China accounts for 55 percent of global sales of such vehicles.
According to BloombergNEF, in 2023, electric car sales could reach 14 million units, a rise of 35 percent compared to the previous year. American Tesla and Chinese BYD are spearheading this surge. Total sales in Europe are estimated at 3 million units. The decisions of German car manufacturers.
