Volkswagen To Temporarily Halt Production Of Two EV Models Due To Poor Demand, Says Will 'Watch The Market'
Portfolio Pulse from Anan Ashraf
Volkswagen AG (OTCPK: VWAGY) is temporarily suspending production of its ID.3 and Cupra Born electric vehicle models due to weak demand. The suspension will affect its Zwickau and Dresden plants for the first two weeks of October. The company has not disclosed how many employees will be impacted by the slowdown. This comes after Volkswagen invested over a billion dollars in 2018 to upgrade the plant for EV production.
September 27, 2023 | 8:05 am
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Volkswagen's decision to suspend production of two EV models due to weak demand could negatively impact its short-term revenues and profitability. The company's stock may face downward pressure as a result.
The suspension of production indicates weak demand for Volkswagen's EV models, which could lead to lower revenues and profitability in the short term. This could negatively impact investor sentiment and put downward pressure on the company's stock price.
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