Due to low demand, Volkswagen's main factory in Wolfsburg, Germany, will no longer produce the electric ID 3. The ID.3 BEV hatchback will be produced at Volkswagen's EV-exclusive Zwickau plant in eastern Germany instead of Wolfsburg.

Volkswagen's production chief, Christian Vollmer, pointed out the value of prudent expenditure: "Every euro that we do not have to spend counts," as reported by Electrek.

The car manufacturer's goal of optimizing its fully equipped site and simplifying resources led to ID.3 manufacturing in Zwickau. Volkswagen blames slow demand for reduced Zwickau factory shifts in recent months.

Wolfsburg will continue to produce ICE and plug-in hybrid automobiles like the Golf and Tiguan. Thanks to these models' performance, Vollmer hopes to produce over 500,000 automobiles at the main factory this year.

Volkswagen delivered 140,800 ID.3s in 2023, despite issues. The company's last-year cost-cutting program seeks €10 billion ($10.8 billion) in savings by 2026, including significant job cuts. Volkswagen aims for a 6.5% return on sales, up from 3.6% last year.

Minimizing ID.3 Production Output

Production of the ID.3 will continue at Volkswagen's Dresden plant, albeit at a reduced scale. Additionally, plans for overflow production of the ID.2 at the main Wolfsburg plant have been delayed, with initial small-scale production initially scheduled for the end of last year.

In collaboration news, Renault and Volkswagen are reportedly discussing producing a battery-electric vehicle (BEV) minicar for the European market. Volkswagen and Xpeng are also developing two mid-sized BEVs for China to be released in 2026.

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Volkswagen's Recent US Customs Trouble

These developments follow an incident wherein Volkswagen was denied entry into the United States for several of its models due to concerns that a Chinese-made component may have violated labor laws.

Volkswagen acknowledged in February that it was delayed in delivering certain vehicles from ports to dealers due to a customs issue and specified that the problem was linked to a "small electronic component." The company assured us that the component was being replaced.

According to a report from VOA, the component from "Western China," violated US anti-forced labor rules Porsche, Bentley, and Audi vehicles are impacted.

Volkswagen stated that it was unaware of the part's origin, as it had been obtained from a supplier. The automaker learned of the issue from one of its suppliers, prompting notification to US authorities.

In response to the situation, Volkswagen emphasized its commitment to taking allegations of human rights infringements seriously within and across the supply chain. The company initiated an investigation upon receiving information about the allegations.

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