VW extends summer holidays in Emden: ID.4 production crisis!

VW extends summer holidays in Emden: ID.4 production crisis!

There is currently a mixed mood at the VW plant in Emden. How News38 reported, this year's summer factory holidays have been extended by nine days, which affects the production of the popular ID.4 model. The reason for this is a sale that is not flourishing as expected. From July 10th to August 12th there will be a standstill in Emden while the works council and management adjust the workforce as a precaution to a fluctuating order situation.

International markets such as Italy, Belgium and South Korea are proving particularly volatile. The factory, which was originally designed to deliver 800 ID.4s per day, did not achieve the desired capacity utilization. Only a year ago they switched from producing the VW Passat to the ID.4, but the reality is different. Accordingly, even the late shift in production of the ID.4 and ID.7 models is now being canceled, which brings further uncertainty for employees.

Difficult market situation for electric vehicles

The market situation for the two models ID.4 and ID.7 is described as “very fragile”, which not only affects production but also the workforce. The head of the works council, Manfred Wulff, confirmed the reduction in production, which has far-reaching consequences. Around 300 of 1,500 temporary workers in Emden will have to vacate their jobs in August, while demand for electric cars is almost 30 percent below the originally planned production figures. This development is primarily attributed to falling subsidies and high electricity prices, as well daily news notes.

The reluctance to buy electric cars cannot be viewed independently of the political framework conditions. Discussions about new purchasing incentives, such as a possible reduction in VAT, are already underway. Lower Saxony's Economics Minister Olaf Lies has taken up this issue and sees an urgent need for action.

Production adjustments and future prospects

The signs point to change. The planned third shift system for the electric models, which was planned for autumn, has been postponed for the time being. The lack of small electric cars on offer from German manufacturers also poses a challenge. The high cost structure for batteries makes the small electric vehicles less attractive compared to their combustion engine colleagues.

The uncertainty cannot be overlooked: Although most VW employees' working time accounts are full, which allows for a certain degree of flexibility, there are concerns that some employees could end up in the red if the absences continue. It remains to be seen how the situation develops for VW and the entire electric car industry, especially given the worrying sales figures.

In these challenging times, both employees and company management must constantly readjust course in order to successfully master the turnaround.