Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Volkswagen's main plant producing fewest cars since 1958, source says

Published 10/20/2021, 07:55 AM
Updated 10/20/2021, 08:01 AM
© Reuters. FILE PHOTO: Staff at the Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020. Swen Pfoertner/Pool via REUTERS

By Jan Schwartz and Victoria Waldersee

BERLIN (Reuters) - Volkswagen (DE:VOWG_p) has produced just 300,000 cars at its main Wolfsburg plant so far this year, a company source with knowledge of the matter said, the lowest figure since 1958 and far behind its average output before the pandemic.

The plant, which makes cars from the Golf, Tiguan, and Seat brands among others, produced an average of 780,000 vehicles per year in the past decade and the company said in 2018 it aimed to boost this figure to a million.

But supply chain problems meant just under 500,000 vehicles made it off the assembly line in 2020. This year's output, first reported by Die Zeit weekly, is set to be even lower as the chip crisis sets in.

Volkswagen has previously said it would have a production shortfall in the high hundreds of thousands due to a lack of semiconductors, a problem plaguing automakers worldwide which the company expects to last well into 2022.

A spokesperson said last week that discussions were underway to address the competitiveness of the Wolfsburg plant, which does not yet produce fully electric vehicles, particularly in the face of growing competition from new entrants such as Tesla (NASDAQ:TSLA).

The comments followed reports that Volkswagen CEO Herbert Diess had said at a supervisory board meeting in September that a delay in the transition to electric vehicles could cost the company 30,000 jobs - one in four of its current employees.

Latest comments

Volkswagen has produced in only one factory in the worst year from 1958 the same number of cars prduced by tesla in the last quarter in all the factory around the world...good to the moon...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.