VW adjusts production: More EVs and fewer combustion-engine cars

Here are the key points about VW's production changes:

• Capacity shifts: Emden and Zwickau are adding shifts to build EVs such as the ID.7 and ID.3
• Fewer shifts in Wolfsburg: Annual production of combustion-engine models, including the Golf and Tiguan, is expected to fall to around 580,000 vehicles
• Pressure on profit margins: Despite strong demand, EVs built on the MEB platform remain less profitable

EV plants add shifts as Wolfsburg scales back

Volkswagen has seen a marked increase in orders for fully electric vehicles in Germany. To meet demand, it is raising output at its dedicated EV plants in Emden and Zwickau. The ID.7 Tourer and updated ID.3, in particular, are prompting additional shifts at the two sites.

At the same time, Volkswagen is cutting production of combustion-engine models. Its main Wolfsburg plant has canceled planned extra shifts for established models such as the Golf and Tiguan. The plant now expects to build about 580,000 vehicles this year, down from its original target of 600,000.

Production shifts and pressure on profit margins

The revised production plans reflect the continuing shift in the types of vehicles built at Volkswagen's factories. Although EV output is rising, vehicles based on the MEB platform do not yet generate the same returns as conventional combustion-engine models.

Volkswagen also competes directly with established EVs such as the Tesla Model Y and Hyundai Ioniq 5, limiting its room to adjust prices. The production changes are intended to make better use of factory capacity while responding to customer demand.