Volkswagen Pauses German EV Production Amid Weak Demand

Volkswagen is temporarily halting production at its Zwickau and Dresden electric vehicle plants in Germany due to weak demand for fully electric cars, reflecting broader challenges in Europe's auto industry. The company will pause work for one week in early October, with potential additional closures at its Emden and Osnabrück plants, while adding shifts for traditional combustion engine cars at its Wolfsburg plant. This move comes amid a slow adoption of EVs across Europe, where only 16% of new car buyers opt for fully electric vehicles, with many consumers concerned about battery range and charging infrastructure. Similarly, automotive giant Stellantis is pausing production at several European factories, including plants in Italy and France, to address excess vehicle stock and weak market demand. These production adjustments illustrate the difficulties major automakers face as they navigate the transition to electric vehicles amid consumer hesitancy and softening demand across the continent. Volkswagen has also committed to significant job cuts by 2030 as part of broader cost-saving measures in response to these market conditions.