According to The Next Web, Volkswagen's ID.3 and the Cupra Born are the vehicles affected by the measures, while the production of the ID.4, ID.5 and Audi Q4 e-tron will continue as planned.

With tough competition from Tesla and Chinese manufacturer BYD and rising living costs in Europe, Volkswagen had trouble selling its electric vehicles across all brands. Another reason seems to be a reduction of the subsidies offered by the German government, from 6.000 euros to 3.000-4.500 and which will continue to drop from January, next year.

Given that fewer EVs will be produced, this will also affect the local economy. Volkswagen officials recently announced that around 300 employees at its Zwickau plant will be released from duty.

Volkswagen, like BMW and Tesla, are moving the manufacturing of their vehicles to China, where the cost of living didn't rise as much as in Europe, meaning that it can be cheaper for them to transport the vehicles from Asia back on the Old Continent.