Volkswagen Enforces Temporary Closure of Its Primary Production Facility in Germany

Volkswagen has initiated a temporary production hiatus at its largest plant in Europe, located in Zwickau, Germany. This pause is expected to last for approximately three weeks and is not attributed to low demand, but rather to a shortage of electric motors. The automaker points to constraints in the production of e-drives at the Volkswagen Group Components site in Kassel, Germany, as the primary cause for this interruption.

The limited capacity at the Kassel plant has compelled Volkswagen to suspend the production of several models, including the Audi Q4 e-tron, the Audi Q4 Sportback e-tron, as well as the Volkswagen ID.4 and ID.5 models, all of which are built on the MEB architecture. Notably, the production of the Volkswagen ID.3 and Cupra Born remains unaffected, as these models still utilize the older electric motor, allowing their production to proceed as planned.

The shortage revolves around the insufficient supply of the new APP550 electric motors, critical components powering the affected cars, from the Kassel plant to the Zwickau facility. Consequently, the Zwickau plant has been compelled to halt production lines for up to three weeks, impacting over 1,000 employees out of the approximately 8,000 workforce at the site. This temporary shutdown provides the supplier with the necessary time to readjust their stock levels.

The APP550 electric motors, introduced earlier this year, were specifically engineered to deliver more power and higher torque compared to their predecessors. While the previous motors could achieve 150 kW (201 horsepower / 204 PS) and 229 lb-ft (310 Nm), the new motors boast an increased capability of generating 210 kW (282 horsepower / 286 PS) and 406 lb-ft (550 Nm) of torque.

To address the shortage, Volkswagen plans to redirect a limited number of APP550 units to the Emden plant, where the ID.4 is also manufactured. Given the substantial demand for the newly launched Volkswagen ID.7, the automotive group cannot afford any delays in its production.

Zwickau stands as Volkswagen's largest electric vehicle (EV) production site in Europe, following a nearly $1.3 billion investment announced in 2018 to convert the factory into an all-EV production center. The ambitious conversion was successfully executed within a remarkable 26-month timeframe. Originally intended to produce over 300,000 vehicles annually, the recent bottleneck has disrupted these plans, challenging the group's production targets. Currently, three of the group's brands collectively assemble six different car models at the Zwickau plant, which spans an expansive 1,800,000 square meters, equivalent to 252 soccer fields.

Looking ahead, Volkswagen aims to introduce a seventh model in Zwickau starting in 2026. This upcoming business sedan, codenamed Project Trinity, will be based on the forthcoming SSP architecture, signaling the brand's ongoing commitment to advancing electric vehicle technology.