09:11 19-11-2025

Audi cuts Neckarsulm production as EV demand softens and tariffs bite

Audi is reducing shifts at its Neckarsulm plant amid softer demand, EV uncertainty, chip shortages, and U.S. tariffs, signaling strain in Europe’s auto sector.

Audi is scaling back output at its Neckarsulm plant, a development that reads as one of the clearest warning signs for Europe’s car industry. In November, the factory operated on single shifts for several days and shut down entirely on the 14th and 21st. The reasons are layered: softer demand, uncertainty across the electric-vehicle market, steep U.S. tariffs, and erratic electronics supplies. When a premium maker pauses the line mid-month, it signals an ecosystem that has lost its rhythm.

The site builds the brand’s core models—the A5, A6, A8, and the e-tron GT. Internal documents indicate production is now scheduled week by week, a blunt sign that predictability has evaporated. Even with a partial recovery in components such as Nexperia chips, the balance remains fragile, and week-to-week planning is no foundation for stable operations.

From January to September, Audi delivered just 1.18 million vehicles—a decline of nearly 5%. U.S. duties add further strain, set to cost the company €1.3 billion through the end of 2025. On top of that, lingering doubt around European EV subsidies is freezing investment decisions that usually require long horizons.

The company said the rollout of new generations of the A5 and A6 is close to completion, and the plant is preparing to launch the updated A6 outside Europe. Even so, the site’s future ultimately depends on Volkswagen Group’s global strategy. With fierce competition and waning interest in the brand across Europe, Audi is not ruling out further production pauses—an admission that underscores how delicate the current footing really is.