JAKARTA - Unsatisfactory news came from renowned automotive manufacturer Volkswagen. The German manufacturer faces serious challenges and decides to stop production of electric vehicles at its factory in Zwickau due to concerns over declining demand.

Reporting from the ArenaEV page, Wednesday, December 6, Volkswagen has stopped production of ID.3 hatchbacks and Cupra Born for a full month. This decision was taken to balance the supply and demand for their electric vehicles.

Not only these two models, but other production lines are also experiencing disruptions, including ID.4, ID.5, Audi Q4 e-tron, and Audi Q4 Sportback e-tron. The scarcity of new rear-driven units, particularly the new APP550 from the Volkswagen Group, is the main cause of production termination for about three weeks, especially in November.

According to German media reports, the situation in the Volkswagen Group is considered "critical". In fact, Volkswagen CEO Thomas Schaefer has given a warning regarding the lack of competitiveness of the brand. Difficult steps can also be seen from the company's decision not to extend the contract of 269 employees this year, and nearly 500 workers are not expected to get a contract extension in the coming year.

This difficult situation provides a serious picture of the challenges automotive manufacturers face in the transition to electric vehicles. Despite the growing interest in electric vehicles, Volkswagen like many other companies in the industry continues to struggle with the complexity of supply chain management, market demand forecasts, and the need to remain competitive.

As is well known, the Zwickau Factory is the center of production of Volkswagen electric vehicles and is the main focus in the industrial transition to electric mobility. However, recent developments show that the trip to electrification is not smooth for this German automotive giant.


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