trending Market Intelligence /marketintelligence/en/news-insights/trending/xiiurhcksijatm3jdj8qhw2 content esgSubNav
In This List

Volkswagen suspends production at main plant to cope with new emissions tests

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Volkswagen suspends production at main plant to cope with new emissions tests

Volkswagen AG plans to temporarily halt productions at its main factory in Wolfsburg, Germany, in the third quarter to prevent a backlog of cars as it shifts to the new European emission test cycle, according to a June 6 company release.

The WLTP, or Worldwide Harmonized Light Vehicle Test Procedure, was established by the EU to measure fuel consumption and carbon dioxide and pollutant emissions from passenger cars.

In his address to the company's staff, Volkswagen CEO Herbert Diess referred to the switch to the WLTP as a challenge, noting that the cycle is more complex and time-consuming. He added that the volume of testing work might be three to four times higher than the previous volume.

Diess told employees that after the work holidays in Wolfsburg, the facility will only produce vehicles that meet the new standards.

"Vehicles will be delivered step-by-step as soon as the type approvals required are available. Nevertheless, we will need to store a large number of vehicles on an interim basis," Diess said. "To ensure that this number does not become too large, we will need to plan closure days for production in Wolfsburg during the period between the works holidays and the end of September," he added.

Volkswagen's decision comes as the carmaker faces an emissions scandal that dates back to 2015.

Most recently, Volkswagen's unit Porsche Automobil Holding SE said June 1 that it will manufacture a model range that is fit for the WLTP measurement cycle, ahead of the introduction of new EU standards in September.