Volkswagen is reallocating production resources from internal combustion engine vehicles to electric models due to shifting consumer demand in Europe. In Germany, orders for electric cars have surpassed those for traditional gas and diesel vehicles.
The company is canceling planned extra shifts for gas-powered Golf and Tiguan models at its Wolfsburg plant. Annual production at this facility is now projected at 580 000 units, down from the previously targeted 600 000 vehicles.
Conversely, facilities in Emden and Zwickau are increasing capacity with at least two additional shifts. The Zwickau plant expects higher utilization driven by demand for the updated ID.3 Neo, which launched in April.
The entry-level ID. Polo has secured over 40 000 orders in Europe since its April launch, with waitlists reaching at least 10 months. The model starts at €24 995 with a 37 kWh battery and a 334 km range.
Production is also ramping up at the Martorell plant in Spain for the ID. Polo, Skoda Epiq, and Cupra Raval. Additionally, the ID. Cross electric SUV, which opened for orders in July at a starting price of €27 995, shows strong initial demand.
Volkswagen is implementing a restructuring plan through 2030, which includes potential global job cuts of up to 100 000 positions and plant closures to reduce costs amid competition from Chinese manufacturers like BYD.
