Europe's largest carmaker, Volkswagen, is introducing extra shifts at its main plant in Wolfsburg due to high demand. A company spokeswoman said on Thursday that this applies to all four assembly lines. Management and the works council have agreed to the extra work until the collective annual holiday in July.
In Wolfsburg, Volkswagen produces its best-selling models: the Tiguan, Golf, Touran, as well as the seven-seater Tayron. In addition, the factory also produces parts such as the rear doors for the ID.3 model. Additional shifts are also being introduced here.
Increased demand in Western Europe
The company says it is currently benefiting from strong demand for its vehicles. Sales chief Marko Schubert said during a presentation of first-quarter sales results that orders in Western Europe rose by 29 percent in the period.
Volkswagen expects favorable tailwinds in the coming months, thanks to the numerous new models that have recently been introduced to the market.
The company has also been in the spotlight recently for its drastic cost-cutting program. It plans to cut 2030 jobs by 35.000. Last year, Volkswagen did not rule out closing individual plants, but those measures have been put on hold for now.
Last year, the group sold significantly fewer cars than before. Sales in the Asian market, which has been a key market for years, are particularly weak. The company is now trying to conquer new markets - among other things, by introducing a new, affordable electric car priced at less than 20.000 euros.
Negotiations with the US government
And regarding the tariffs imposed by Donald Trump, Volkswagen is negotiating directly with the US government and hopes to find understanding.
"Constructive talks are currently underway with the US government," Volkswagen CEO Oliver Blume told the Frankfurter Allgemeine Zeitung newspaper. "We have something to offer and we want to expand our business further."
As a counter-favor for customs relief, Volkswagen, for example, offered the possibility of starting production of the Audi brand in the United States.
The head of the Blume concern ruled out the possibility of Volkswagen's Porsche brand being produced in the US. The reason is the small quantities - currently around 70.000 cars are produced across six different models.
Significant market
"For Porsche, the United States is the most successful single market, and the 'Made in Germany' label plays an important role for American customers," Blume said. "For cost-effective production on site, Porsche would have to have a significantly higher production volume."
Last year, Volkswagen's core brand sold nearly 380.000 new cars in the US.
The US president recently imposed a 25 percent tariff on vehicles imported into the US - and tariffs on imported auto parts are expected to be imposed in early May. At the same time, some vehicles from Mexico and Canada are exempt from tariffs under the North American Free Trade Agreement. Shares of US auto giants General Motors and Ford rose after Trump's announcement.
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