Global automotive giant Volkswagen is considering closing several of its German manufacturing plants amid a reduction in demand for its vehicles. The German car maker announced the possibility of closure of its Osnabrück plant in Lower Saxony and Dresden plant in Saxony, which combined have the capacity to produce 120,000 vehicles a year.
Volkswagen Group collectively is reported to have the capacity to produce 2.7m cars a year in Germany. However, its factories only produced just under 2m cars in 2023, suggesting a drastic underuse of factories that the manufacturer is trying to resolve.
This underuse can be attributed in some capacity to strong competition from Chinese car makers in recent years, who are capitalising on the shift to electric vehicles (EVs) as European manufacturers struggle to keep pace with strict EU and UK rules on average carbon emissions.
Contechs works closely with several OEMs as they transition to EVs and is the strategic partner of choice in the development of cutting-edge powertrain systems for battery electric, fuel-cell electric, and hybrid electric vehicles.
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