Volkswagen in Germany has begun receiving more orders for fully electric vehicles than for models with internal combustion engines. At the same time, the company is cancelling planned additional shifts at its Wolfsburg plant, as demand for electric cars has grown faster than expected.
As Motor1 reports, citing Automobilwoche, the shift in buyer preferences has left the automaker with excess production capacity for ICE vehicles. The Wolfsburg plant, which produces the Golf, Tiguan and Tayron, is expected to make around 580,000 vehicles this year instead of more than 600,000 as previously planned.
Additional shifts for electric vehicles
At its Emden facility, Volkswagen plans at least two additional shifts to increase production of the electric ID.7 liftback and estate versions. The Zwickau plant will also benefit from stronger demand for the ID.3 Neo, the new name for the company’s compact hatchback on a rear-wheel-drive platform.
More current news is available on the UA.News Telegram channel Telegram.
The ID. Polo has already received more than 40,000 orders in Europe. This compact electric hatchback is manufactured in Spain. The model won the budget category of the German Car of the Year award, ahead of the Renault Twingo and Clio.
Pressure on Volkswagen plants
A higher number of EV orders does not guarantee higher profitability for Volkswagen: margins on such vehicles are still lower than on comparable gasoline-powered cars. This comes amid the company’s cost-cutting programme.
Electric cars have fewer mechanical components and generally require less labour to assemble. Therefore, the shift of buyers to such models increases pressure on German plants historically designed to produce ICE vehicles. Volkswagen has already announced plans to reduce capacity and employment as part of its restructuring. Golf production is to be moved from Wolfsburg to Puebla, Mexico, later in 2027.
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