Volkswagen has just announced changes to its plans involving the ID.3’s production site. German legacy automaker has apparently cancelled its previously announced strategy to build the electric hatchback in Wolfsburg to save funds.
Plan changes
Volkswagen abandoned its plans to produce the ID.3 at its main factory in Wolfsburg due to low demand, German news outlet Handelsblatt reported.
Instead, the company will keep producing the Volkswagen ID.3 in Saxony, Germany. The waning demand also prompted the automaker to cut shifts at its Zwickau factory in Saxony.
“Every euro that we do not have to spend counts. For this reason, we have decided to continue to bundle the volume of the ID3 in Zwickau and to effectively utilize the already fully equipped site.”
Christian Vollmer, VW Production Chief
Savings target
Volkswagen set a target last year to save €10 billion by 2026, potentially enabling the company to hit a 6.5% profit margin. It indicates a notable increase from just 3.6% in 2022.
In that sense, Volkswagen decided to continue producing its traditional ICE-powered and plug-in hybrid vehicle models in Wolfsburg for the time being. The mix includes the popular Volkswagen Golf and Tiguan, which will optimize the capacity.
“These are all strong models that will keep the plant well utilized.”
Christian Vollmer, VW Production Chief
Wolfsburg factory to cross the 500k production milestone this year
The Volkswagen executive also noted that the company will surpass 500,000 vehicle production at the main factory in 2024. For reference, the German brand sold 140,800 ID.3s in 2024, Automotive News Europe reported.
“I am confident that we will exceed the 500,000 vehicles produced at the main plant this year for the first time in a long time.”
Christian Vollmer, VW Production Chief
As part of the plan changes, the VW ID.3 will stay in the Dresden factory’s production line. The company is building the electric hatchback in limited numbers as of now. Therefore, the conversion of the automaker’s main factory for EVs will continue without the ID.3.
