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VW slows Wolfsburg output amid tepid European demand

May 13, 2020
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FRANKFURT — Volkswagen Group will reduce output at its factory in Wolfsburg on four days this month as consumer demand for new cars remains weak in Europe.

VW will temporarily halt production on two assembly lines that make the Tiguan, Touran and Seat Tarraco models and cancel one shift at a separate line that produces the Golf hatchback, the company said on Tuesday in an emailed statement.

“We have to keep operating flexibly depending on customers’ vehicle orders,” the automaker said, adding that it hopes the situation will normalize as soon as possible.

VW gradually restarted output in Europe last month along with peers such as Daimler and Renault after the coronavirus outbreak shuttered factories in March and most of April.

But while lockdown measures are easing, many customers still stay clear of showrooms as the economic fallout of the crisis has started to push up unemployment across the region.

VW said while sales in China exceeded the prior-year level in April, it will keep adjusting output to demand until sales in Europe pick up.

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