Audi announced it will stop production at its Neckarsulm facility in the first week of October due to weak demand.
The sluggish auto sales from the southern Europe are beginning to affect the northern and central Europe too, causing loses to both mass-market models and premium brands. Last week Daimler has dropped its profit forecast for its core Mercedes-Benz Cars division due to deteriorating market conditions in Europe and China.
The automaker said that the one-week production halt will not affect the company’s full-year target of 1.4 million vehicles. The Neckarsulm plant, which is Audi’s second-largest plant in Germany with headquarters in Ingolstadt, manufactures the A6, A7 and A8 models among others.
Recently Audi unveiled its new e-gas project, aimed at reducing the carbon dioxide emissions by producing a synthetic fuel from hydrogen and carbon dioxide. The end result will be the methane, which the main component of natural gas, but produced in a new way.
The automaker plans to build a pilot plant in the UK, powered by windmills, which will produce hydrogen from water using the electrolysis process. The resulting gas will be used for the electric cars, which will function with hydrogen fuel cells.