Car manufacturing temporarily halts in Hanover at Volkswagen facility
Volkswagen Commercial Vehicles (VWN) has announced a temporary production halt at its Hannover plant, effective from October 13 to 25. The decision aims to provide necessary flexibility in adjusting production planning to the changing demand for light commercial vehicles, particularly for the ID. Buzz and the Multivan.
This move comes as VWN faces intense competition from various players in the market. German rivals BMW and Mercedes-Benz have launched advanced electric models, while Chinese electric vehicle manufacturer BYD has rapidly increased its market share in Europe and China, offering affordable electric vehicles that challenge VW's position in the stock market today. These factors are putting pressure on Volkswagen's commercial vehicle sales.
In the first half of 2025, VWN delivered approximately 224,000 vehicles worldwide, a decrease from 231,000 in the same period the previous year. However, the battery-operated ID. Buzz saw an increase of nearly 70% compared to the first half of 2024. Despite this growth, the overall deliveries decreased due to slower-than-expected sales of electric models in the stock market.
Revenue for VWN in the first half of 2025 was €8.7 billion, up from €8.1 billion in the previous year. However, operating profit significantly decreased compared to the same period last year, with a figure of €207 million, down from €635 million.
To offset the production shortfalls, the company will utilise the overtime accounts of employees. VWN remains committed to its sales targets, aiming to strengthen its market performance in the stock market today. The company is also intensifying its sales activities to set targeted impulses in the markets.
The Hannover plant, which is the headquarters of VWN and the production center for the "Bulli" series, is where the production of the ID. Buzz and the Multivan primarily takes place. The plant's temporary closure is due to the stagnating demand for light commercial vehicles in Europe and the downward trend in the stock market today.
Despite the challenges, VWN remains optimistic about its future and is working diligently to meet its sales targets and strengthen its market position in the stock market today. The company continues to innovate and invest in electric vehicle technology, hoping to regain its competitive edge in the rapidly evolving electric vehicle market.
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