Volkswagen: weak demand, cut back on electrics Tesla, clash with Trump returns

Volkswagen has announced a cutback in the production of electric cars in Germany, signalling a slowdown in demand, despite the fact that in August the world's leading manufacturer confirmed its continental leadership in registrations of battery-powered vehicles (Bev). The Zwickau plant will shut down the lines for an entire week starting on 6 October, while in Emden - where the ID.4 and ID.7 models are assembled - shift cuts and possible days off are planned. These are the two plants exclusively dedicated to Bev, which are thus particularly exposed to fluctuations in demand.

The Audi Q4 e-tron would be the most penalised model, due to the effect of US tariffs and uncertainties over European climate policy, with Berlin pushing to revise the ban on endothermic engines from 2035. "Volkswagen is adjusting production to actual customer demand," explained a spokesperson, pointing out that at other sites shifts will be tightened instead. This is the case at the main plant, in Wolfsburg, where, according to the German press, additional shifts will be worked almost every weekend until Christmas. This is explained by the high demand for internal combustion engines for the Golf, Tiguan and Tayron.

The slowdown is not an isolated case. A week ago the Porsche case exploded. The sports and luxury car manufacturer controlled by VW had to reshape its offer towards traditional and hybrid engines. A choice thathas weighed several billion on Wolfsburg's accounts. In recent months Mercedes-Benz has revised its environmental targets by favouring thermal and hybrid models; Renault Group has reduced EV delivery estimates; Stellantis has slowed the arrival of some electric models. In the US, Ford cut production of the F-150 Lightning pick-up and the Mustang Mach-E crossover, while General Motors temporarily halted the Chevrolet Bolt and Equinox EV model lines. These decisions reflect a phase of 'adjustment' in the market, amid squeezed margins, weaker demand in Europe and the US, and fast-growing competition from China.

Overseas, meanwhile, Tesla enters the field. Elon Musk's company, which is losing share in Europe, has called on the Trump administration not to dismantle emissions standards and the historic definition that greenhouse gases pose a danger to public health. The Environmental Protection Agency (EPA) is considering a relaxation of the rules, backed by a front that includes General Motors, Toyota and Volkswagen itself. Tesla fears losing billions of dollars in environmental credits, which in 2024 yielded 2.8 billion in revenues (+50% on 2023), sold to other manufacturers to offset their emissions.

In his speech, the Californian group called the EPA's plan 'harmful' because it risks weakening performance-based incentives and reducing the attractiveness for innovative investments. Musk, once close to Trump, is now on a collision course with the former president, who has promised to eliminate several subsidies for electric cars.