Volkswagen's Battery Plant In Germany To Operate At Reduced Capacity Amid Financial Strains
Portfolio Pulse from Benzinga Neuro
Volkswagen's PowerCo battery subsidiary will operate its Salzgitter plant in Germany at half capacity due to financial pressures and reduced EV demand. Only one of the two planned production lines will be built, reducing capacity to 20 gigawatt hours. This decision follows potential plant shutdowns and job cuts, with a narrow window to improve the situation. Despite cutbacks, production is set to start in 2025.
September 06, 2024 | 12:34 pm
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Volkswagen's decision to operate its Salzgitter battery plant at half capacity due to financial strains and reduced EV demand may impact its stock negatively in the short term. The company faces potential plant shutdowns and job cuts.
The decision to reduce the plant's capacity indicates financial challenges and lower demand for EVs, which could negatively impact Volkswagen's stock. The news of potential plant shutdowns and job cuts adds to the negative sentiment.
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