VW puts on hold the production at two German plants image

Because of low demand, Volkswagen is forced to suspend production at its main gearbox plant, a company spokesman has recently announced.

Volkswagen is forced to take some drastic actions, in an attempt to deal with low demand and also with some technical problems at one of its German sites. Therefore, Europe’s largest automaker will suspend production in some areas of its factory in Kassel, Germany, on February 1, February 5 and February 8, a spokesman for the factory said on Friday. This news confirms a recent report by the regional newspaper Hessische Niedersaechsische Allgemeine, which previously stated that Volkswagen would be forced to halt the output in the coming days. As VW’s main manufacturer of gearboxes, the Kassel plant is one of the key component suppliers for the vehicle assembly plants operated by the Volkswagen Group around the world. In addition to manufacturing gearboxes, the plant supplies a number of other key vehicle components, such as exhaust systems and body parts. Production was already suspended on Friday with 400 workers affected, the spokesman said. The output is affected by slower demand for components and technical problems at the stamping plant of VW’s factory in Emden, he revealed.

The Emden plant, which has a workforce of about 9,600, produces the Passat Saloon and is the only plant to produce the Passat Variant, Passat Alltrack and the Volkswagen CC. In 2014, 225,008 vehicles left the assembly lines in Emden. After posting the first drop in sales of its core brand in more than a decade last year, Volkswagen will have a very challenging 2015 as it trying to limit the effects of the emissions scandal.

Via Reuters