On September 26, international media outlets reported that Volkswagen is slashing production and temporarily suspending operations at two of its German factories. This move comes in response to the slower - than - anticipated growth in the demand for electric vehicles.

The Zwickau factory is set to halt production for a week, starting from October 6. A factory spokesperson explained that the weak demand for the Audi Q4 e - tron model is the primary cause. This model has been adversely impacted by U.S. tariffs and Germany's efforts to loosen the EU's ban on the sale of new internal - combustion - engine vehicles.

According to sources close to the situation, the Emden factory, which manufactures the Volkswagen ID.4 and ID.7 models, has reduced its employees' working hours. Moreover, it is anticipated to cease production for several days. Both the Zwickau and Emden factories focus on electric vehicle production and are extremely susceptible to fluctuations in the demand for battery - powered models.

Although Volkswagen has witnessed an increase in electric vehicle sales in Europe, the overall growth rate has fallen short of expectations and has been inconsistent. Furthermore, Volkswagen is grappling with issues of overcapacity.

These two factories were included in Volkswagen's large - scale restructuring plan from last year. At that time, labor leaders consented to cost - cutting measures and the layoff of 35,000 employees by the end of the decade to prevent factory closures.