From Wolfsburg to Zwickau: Volkswagen shifts and consolidates ID.3 production amidst wavering demand

Volkswagen (VW) has announced the cancellation of ID.3 electric vehicle assembly plans at its Wolfsburg plant, in a move that the OEM is angling as optimising production resources. The decision marks an obvious shift in regional production focus aimed at achieving a more efficient utilisation of resources amidst fluctuating market demands. Initially introduced at the Zwickau plant in Germany in 2019, alongside a smaller volume production in Dresden, the ID.3 represented VW’s push into electric mobility production. However, with market dynamics evolving, VW has reevaluated its production strategy. 

Christian Vollmer, Member of the Board of Management for Production at VW, emphasised the importance of prudent spending, stating, “At the end of the day, every euro that we don’t have to spend counts.

“For this reason, we have decided to continue to bundle the volume of the ID.3 in Zwickau and to effectively utilise the already fully scaffolded site.”

VW is clearly focused on ensuring its operational efficiency, but some have voiced concerns that insufficient European demand for “an e-Golf-type car from Volkswagen,” doesn’t seem to add up. 

The Wolfsburg plant, despite gaining valuable experience in partial ID.3 production, will now channel its focus towards the production of combustion and hybrid vehicles, including the anticipated Tiguan and Golf models. VW says that it remains confident in the demand for these models, positioning them as leaders for the brand.

Meanwhile, ID.3 assembly will continue exclusively at the Zwickau plant in Saxony, leveraging existing infrastructure to meet production demands more effectively. Shift cancellations in late 2023 had already highlighted the need for the OEM to adapt to evolving market dynamics, with low demand necessitating a consolidation of production resources.