VW pauses production of ID Buzz and Multivan due to weak demand
Volkswagen decided to pause the production of ID. Buzz and the related Multivan at its plant in Hannover, Germany, reports Autonews. It started on October 20 and will last for four days.
What is known
A company representative told the German agency DPA that the pause will allow to "flexibly adapt production processes to changed market conditions." Simply put: sales do not meet expectations.
When ID. Buzz was launched, VW claimed that the Hannover plant could produce up to 130,000 units per year, but the reality turned out to be far from it. The model sold around 30,000 units worldwide each of the last two years.
Obviously, these figures fall far short of Volkswagen's early ambitions. Meanwhile, the demand for electric vehicles in Europe has weakened, competition from China is growing, and VW is cutting costs and working hours at its German plants.
The automaker says it is ramping up marketing and offering incentives to boost interest in its light commercial vehicle lineup, but the task is challenging. New competitors like Kia PV5, which promises the same space, a longer range, and a lower price, are already on the way.
Source: Autonews