FRANKFURT (Reuters) – Volkswagen announced on Tuesday that it will be temporarily suspending the production of its ID.3 and Cupra Born electric cars at its Zwickau and Dresden plants in Germany for the first two weeks of October. This decision was made in response to weaker demand for these models, according to a spokesperson for the carmaker.
The ID.3 and Cupra Born are part of Volkswagen’s ambitious plan to transition to electric mobility, and the company has invested heavily in these new models. However, the recent decline in demand has prompted Volkswagen to adjust its production and take measures to ensure efficiency.
By halting production temporarily, Volkswagen aims to avoid an excess inventory of these electric vehicles. This move will allow the carmaker to effectively align supply with the current market demand and prevent potential financial losses.
The Zwickau and Dresden plants are major production facilities for Volkswagen’s electric vehicles. Zwickau, in particular, has been transformed into a dedicated production site for electric cars, with the ID.3 being the first model to be manufactured there.
The ID.3 is Volkswagen’s all-electric hatchback, and it has garnered attention for its affordability and range. The Cupra Born, on the other hand, is a sportier version of the ID.3 produced by Volkswagen’s Spanish subsidiary, Seat.
Volkswagen’s decision to suspend production reflects the ongoing challenges faced by the global automotive industry amid the COVID-19 pandemic. Supply chain disruptions, chip shortages, and fluctuating market demand have led many car manufacturers to adjust their production schedules.
Despite the temporary suspension, Volkswagen remains committed to its electric mobility strategy and aims to resume production of the ID.3 and Cupra Born once market conditions improve. The company will continue to monitor the demand for these models closely and make necessary adjustments to its production plans.
Volkswagen’s move comes as other automakers also grapple with similar challenges. The electric vehicle market is rapidly evolving, and manufacturers are navigating the complexities of transitioning from traditional internal combustion engines to electric power.
Overall, the temporary suspension of ID.3 and Cupra Born production is a strategic measure by Volkswagen to adapt to the current market dynamics and ensure the long-term success of its electric mobility initiative.
(Reporting by Ilona Wissenbach, writing by Emma-Victoria Farr, editing by Susan Fenton)
Credit: The Star : Tech Feed
