The Excitement Fades as VW Quietly Stops Production | Carscoops

      The automaker reports that the four-day production halt of the ID. Buzz and Multivan is due to changing market conditions.

      10 hours ago

      VW is temporarily halting production of the ID Buzz and Multivan because of low demand.

      The factory has the capacity to produce 130,000 units each year, but only 35,000 have been sold in 2023.

      High prices and a restricted driving range have diminished interest, especially with new competitors like Kia’s PV5 entering the market.

      Volkswagen’s ID. Buzz was intended to bring a fresh vibe to the brand. It heavily relies on nostalgia, features impressive design, and performs surprisingly well.

      However, it offers a shorter range than nearly all other EVs, and its high cost makes it accessible only to affluent buyers. Recently, reports indicate that VW is not only reducing production of the van but is putting a complete stop to it. This news is not particularly surprising.

      From October 20 to 24, Volkswagen will suspend production of the ID. Buzz and its Multivan counterpart at the Hanover, Germany facility, as reported by Autonews.

      The company informed Germany’s DPA news agency that this decision will enable them to "flexibly adjust production processes to changing market conditions." In simpler terms, sales are below expectations.

      When the ID. Buzz debuted, VW stated the Hanover factory could produce up to 130,000 units per year, but the actual numbers have fallen far short of that. The model has sold around 30,000 units globally in each of the past two years.

      These figures clearly do not align with the initial projections. Meanwhile, demand for EVs in Europe has decreased, competition from China is rising, and VW is cutting costs and hours at its German plants.

      Is It Priced Out of Its Own Market?

      Part of the issue is of Volkswagen's own making. The ID. Buzz's starting price in the U.S. is approximately $61,500, exceeding that of many three-row SUVs, with higher trims pushing past $70,000.

      This is a significant deviation from the original Microbus spirit, which was iconic because of its affordability. By setting high pricing, VW has created a fantastic electric van that many potential buyers may find hard to justify.

      The automaker claims it is enhancing marketing and incentives to generate interest in its light commercial offerings, but the task is daunting. New competitors like the Kia PV5, which offers comparable space, greater range, and a lower price, are emerging as formidable alternatives.