Volkswagen begins series production of the ID in Emden. Tiguan. The start of production falls into a crucial phase for East Frisia and the group. Because the future of the plant is uncertain.
Before the first new ID. As the Tiguan rolls off the assembly line in Emden, a rainbow stretches over the northernmost VW plant in Germany in the morning. Despite concerns about the preservation of the VW location in East Frisia amid VW's savings plans, the mood inside Hall 20b at the start of production of the new electric model is also hopeful.
“I am convinced that this vehicle will make a significant contribution to our factory capacity utilization in the coming years,” said plant manager Enno Fehse to employees and guests. A great team effort is behind the start of production.
The E-Tiguan replaces the E-models ID.4 and ID.5 and is intended to secure the brand's sales in the high-volume SUV segment. The new model has been available to order in Germany since October. Several thousand pre-orders have already been received. The first vehicles are scheduled to be delivered in early 2027.
But the start of production comes at a time of great uncertainty for the approximately 7,700 employees. As a result of the tightened VW austerity measures, the Emden plant is one of the three German VW locations that are threatened with closure. The VW management around boss Oliver Blume currently does not see any subsequent occupancy from 2031 onwards.
ID. Tiguan as a beacon of hope
VW and especially the Emden workforce are betting that the new E-Tiguan can build on the success of the combustion engine model. According to VW, the Tiguan is currently the best-selling model in the entire group worldwide. More than 8.3 million examples have been built since 2007.
Emden's VW works council boss Manfred Wulff said that with the ID. Tiguan has “really made a success” that will drive VW in the next few years. "And that's a good thing because we need this car, we need this location and we need this future perspective."
The Emden plant is in jeopardy
But the VW Group claims to have excess production capacity of 500,000 vehicles in Europe - and the plants in this country, including Emden, are too expensive and uncompetitive.
Employees also admit the cost disadvantages of German locations. The Emden factory had already swallowed tough cost-cutting requirements in order to reduce factory costs and maintain the location. According to recent information from VW brand boss Thomas Schäfer, Emden is on track with these goals.
In an internal interview at the end of October, the manager also made it clear: Overall, the measures were not enough. The environment has deteriorated significantly again. “With the current measures we will not be able to reverse the trend under today’s conditions,” said Schäfer.
Sales are falling - but electric cars are booming in Europe
VW slipped into the deep red in the third quarter. The Wolfsburg-based company is currently struggling with difficult market conditions, especially in China, and the upheaval in the automotive industry. A glimmer of hope: demand for electric cars has recently increased in Europe. From January to September, every fifth vehicle delivered on the home continent was a pure electric vehicle.
In view of the increasing demand, VW has also adjusted production. According to dpa information, planned special shifts have been canceled at the main plant in Wolfsburg, where, among other things, the combustion engine Tiguan is built. Electric car production, on the other hand, should be ramped up - including in Emden, where the ID.7 electric sedan is also being built, which, according to the Federal Motor Transport Authority, was the most frequently registered electric vehicle in Germany in October.
In view of the ID.7 sales, Lower Saxony's Prime Minister Olaf Lies (SPD) emphasized that, despite doubts, it was right to go the route to electric car production in Emden. Lies encouraged the staff. VW has been successfully building cars in Emden for decades, he said. That should also be the aim for the future. “There is no end date for the production of cars in Emden.”
Expert: ID. Tiguan can improve utilization
In the current growth phase of electromobility, the ID. According to industry expert Stefan Bratzel, Tiguan represents an important opportunity for the location. “The model combines an established, successful name with a revised electrical offering,” said the director of the Center of Automotive Management in Bergisch Gladbach. "This creates good conditions for increasing sales volume and improving plant utilization."
According to Bratzel, higher utilization is a crucial lever for spreading the high fixed costs over more vehicles and reducing unit costs. This could strengthen Emden's position in intra-group location competition. “The decisive factor will be whether the ID. Tiguan will then achieve sufficient quantities at competitive prices in the long term,” said Bratzel.
What's next?
Whether the ID. Tiguan will strengthen the position of the Emden plant remains to be seen - and also whether there is much time left. The decision about the future of the locations is likely to be made in the coming months. The supervisory board has instructed the VW board of directors to develop a concept for the production structure in Europe by mid-2027. At the same time, alternative uses for the threatened locations are being examined.
There is also another possibility: Negotiations on the company collective agreement will begin at Volkswagen on November 24th. It is more than questionable whether the negotiators can exclude the future of the plants. The company hears that everything is connected to everything else.
