30 percent below expectations
Over the past few years, car production has barely kept up with demand, partly because of the chip shortage, but now other voices are coming from Germany. Volkswagen is reducing production in Emden, according to the boss of the local works council because the demand for the electric ID4 and ID7 is disappointing.
Sales of new cars have picked up recently, largely because car production is picking up steam. The long waiting times of recent years seem to be resolved, because the chip shortage is largely over and the overdue production is being made up. So positive messages, but it’s not all roses and moonshine. Volkswagen itself is already confronted with overcapacity. Demand is lagging behind production capacity at the Emden plant, reports the Nordwest Zeitung.
For the production of the Volkswagen ID4 and the brand new ID7, the late shift in Emden will be canceled for the next two weeks, until the summer holidays. That holiday is also extended by one week to four weeks. The biggest blow is for 300 of the 1,500 temporary workers; they no longer have to show up as of August. At NDR informs the chairman of the works council that demand is lagging considerably, up to 30 percent below expectations, so that there is no other option. “We notice very much the reluctance of customers in the EV field,” he explains. The local minister of Economic Affairs warns that the entire car industry should be wary of declining demand, especially for electric cars.
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– Thanks for information from Autoweek.nl