Volkswagen will temporarily halt production at two German plants—Dresden and Zwickau—in mid-October due to weak demand for electric vehicles (EVs). Zwickau, which was fully converted to EV production in 2020, builds six models for VW, Audi, and Cupra. Another plant in Osnabrück will also cut its working week, while closure days are under consideration in Emden.
The move—announced on Friday September 26—highlights Europe’s slow EV takeup rates, hindered by consumer concerns over range and charging infrastructure. EVs account for only 16% of new car sales in Europe, compared with 37% for hybrids. In contrast, Chinese brands such as BYD are rapidly gaining market share.
Volkswagen stressed that production adjustments reflect customer demand, with some plants reducing shifts while Wolfsburg, its main combustion-engine hub, adds weekend shifts. The slowdown mirrors similar decisions by carmaker Stellantis.
VW CEO Oliver Blume acknowledged a sharp drop in demand for fully electric cars, despite VW’s ID models ranking among Europe’s top sellers. The ID.4, however, has been hit particularly hard by U.S. tariffs.
Zwickau remains central to VW’s EV strategy, producing nearly half of the group’s electric cars worldwide.
Industry analysts argue that the challenges facing Volkswagen are symptomatic of deeper structural issues within the EV sector. The push for full electrification is burdened by high production costs, scarce raw materials, limited charging infrastructure, and consumer concerns over battery life and resale value. These problems, critics say, are not temporary setbacks— they are inherent obstacles that make the EV transition slower and more uneven than policymakers and manufacturers initially predicted.
