Volkswagen, Europe’s largest automaker, is facing fresh disruptions in its electric transition plans after announcing the temporary closure of two plants in Germany, in addition to halting production of its ID.4 model in the United States.

The company stated that its Zwickau plant, which produces the Audi Q4 e-tron (including the Sportback version), will suspend operations for one week starting October 8. A Volkswagen spokesperson confirmed to Bloomberg that the decision was driven by new U.S. tariffs along with pressure linked to Germany’s efforts to slow down the EU’s transition to electric vehicles.

At the same time, the Emden plant, which produces the ID.4 and ID.7, has reduced working hours for employees. According to informed sources, the plant is expected to undergo a temporary shutdown for several days in the coming period.

Despite strong sales of electric vehicles in Europe—where Volkswagen even surpassed Tesla as the region’s largest EV brand in the first half of the year—the company is grappling with overproduction and slowing demand, reflecting broader challenges in the global auto industry as market trends shift.

Both the Zwickau and Emden facilities are dedicated exclusively to electric vehicle production and were central to Volkswagen’s major restructuring plan announced last year. As part of that plan, the company agreed to reduce its German workforce by around 35,000 employees by 2030, while safeguarding jobs at the two plants.

Volkswagen also plans to shift production of certain models such as the ID.3 and Cupra Born to its Wolfsburg plant in the coming years, while the Zwickau facility will resume production of the Audi Q4 e-tron after the temporary shutdown.

These developments follow Volkswagen’s announcement earlier this month of halting ID.4 production in the United States, highlighting the growing pressures the company faces in maintaining momentum for its electric vehicle sales amid intensifying global competition.