Volkswagen will halt production for one week in mid-October at its Dresden and Zwickau plants in Germany. This is due to weak demand for fully electric vehicles. The Zwickau facility, converted exclusively to EV production in 2020 after ending combustion engine output, builds six models for VW, Audi, and Cupra.
A shorter working week will also be introduced at the Osnabrück plant, while closure days are being considered at Emden, where the ID models are made. Weekend shifts will be added at Wolfsburg, Volkswagen’s main plant for combustion engine models.
Stellantis, owner of Fiat and Peugeot, has also paused production at several European factories, reflecting broader challenges in the EV market. Sales of EVs slowed last month, while hybrid sales grew, highlighting consumer concerns about range and charging infrastructure.
Data from the European Automobile Manufacturers’ Association shows EVs account for 16% of new car sales in Europe, compared to 37% for hybrids. Adoption is strong in Norway but remains weak in southern Europe due to limited charging networks.
Volkswagen CEO Oliver Blume acknowledged a “clear drop in demand” for battery-electric cars amid “massive changes” in the market. The company’s ID models remain among the EU’s best-sellers, but the smaller ID.4 has been hit by tariffs imposed by U.S. President Donald Trump.
Chinese brands, particularly BYD, are rapidly expanding in Europe, with sales up nearly 250% in the first eight months of 2025 compared with the same period in 2024.
The production pause underscores the challenges facing Europe’s transition to EVs, as weak consumer demand, infrastructure gaps, and global competition weigh on manufacturers like Volkswagen
Reference
O’Carroll, L. (2025b, September 26). VW to pause production at two plants as electric vehicle sales stall. The Guardian. https://www.theguardian.com/business/2025/sep/26/vw-to-pause-production-at-two-plants-as-electric-vehicle-sales-stall