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[BUSINESS] · Germany, Spain · 32 sources

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Volkswagen shifts production as EV demand surpasses combustion engine orders in Germany

Volkswagen is undergoing a major production shift as demand for electric vehicles (EVs) in Germany has surpassed orders for internal combustion engine (ICE) models. This transition has prompted the company to cancel planned extra shifts at its Wolfsburg plant, where annual production is now expected to be approximately 580,000 units instead of the previously targeted 600,000.

Conversely, the company is increasing output at its EV-focused plants. The Emden facility is adding at least two extra shifts to boost ID. 7 production, and the Zwickau plant is also raising output to meet demand for models like the ID. 3 Neo. Much of this electric volume is driven by the ‘Electric Urban Car Family’ manufactured in Spain, including the ID. Polo, which has already secured over 40,000 orders in Europe.

These operational changes come amid broader financial and structural pressures. Volkswagen faces a theoretical CO2 debt of 2.75 billion euros for the period between January 2025 and August 2026. Additionally, the company is navigating intense competition in China and implementing large-scale restructuring efforts that include significant workforce reductions and a 50 percent reduction in its global model lineup to improve efficiency and margins.

Entities

Emden · Martin Sander · Volkswagen · Volkswagen Group · Wolfsburg · Zwickau

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6 days ago