VW stops production in Zwickau and Dresden: shock for the region!

VW stops production in Zwickau and Dresden: shock for the region!

In a remarkable turnaround for the national economy and the automotive industry in particular, Volkswagen has announced that it will significantly reduce production at several plants due to weak demand. From October 6, 2025, the production lines in the Zwickau and Dresden factories will be idle for a week News38 reported. The decision to reduce production was recently confirmed by the German Press Agency and follows a report in the “Frankfurter Allgemeine Zeitung” on September 26th.

But it's not just in Zwickau and Dresden that production is being cut back. Employees in Emden and Osnabrück also have to prepare for closing days. In Emden, where discussions with the works council are still ongoing, a decision on closing days is due in the coming days. A reduction in production has already been decided in Osnabrück, which includes at least one closing day per week until the end of the year and an additional one week break in October. The main reason for these drastic measures is the weak sales of electric cars in Zwickau and Emden and the lack of demand for convertibles in Osnabrück.

Background information on market developments

But why is demand so weak? According to information from Volkswagen Group The global economic forecast for 2025 already shows weaker growth dynamics than in the previous year. The automotive industry is closely linked to the global economy and forecasts point to increasingly intense competition.

On the other hand, there are certainly positive aspects for the Volkswagen operations in Wolfsburg. The special shifts that have been running since May of this year are a sign of the high demand for combustion engine models such as the Golf, Tiguan and Tayron. There will be extra shifts on almost every weekend until Christmas, which shows that there is still some interest, at least in certain segments.

What's next?

Volkswagen's current decision to adjust production capacities to customer demand could indicate a long-term strategy. While the forecasts for new passenger car registrations in Germany and Western Europe for 2025 remain at the previous year's level, many manufacturers are faced with the challenge of adapting their production management strategies accordingly.

The uncertainties in the global economy and geopolitical tensions, particularly with regard to the Russia-Ukraine conflict, could continue to have a negative impact on the automotive markets in the coming years. In this context, automobile manufacturers like Volkswagen must now, more than ever, keep a close eye on market conditions and react flexibly.

The coming weeks will show how the negotiations over closing days at the Emden and Osnabrück plants turn out and what measures Volkswagen will take to get production going again. Things remain exciting around the Volkswagen brand.