Volkswagen Halts Golf GTE Orders Due To “Unprecedented Demand”

JAN 3 2018 BY MARK KANE 47

Volkswagen, despite being one of the largest car manufacturers in the world, is getting overwhelmed by demand for some its plug-in models.

Volkswagen Golf GTE Advance five-door hatch – Atlantic Blue (plug-in hybrid)

First we heard of high demand for the e-Golf, so the manufacturing plant added a second shift to double output to 70 cars a day (up to 2,100 a month). Sales of the e-Golf stand in Europe at less than 12,000 after eleven months.

Now, it turns out that Volkswagen isn’t able to provide enough Golf GTE plug-in hybrids and, at least in UK, orders are suspended keep wait times from going beyond several months.

Volkswagen apparently is struggling with undefined production bottlenecks, which is especially strange because the Golf GTE, in all Europe, found only around 7,500 customers over 11-months of 2017. That’s not the kind of volume that should lead to a shortage of anything.

Hopefully, Volkswagen will envision higher production volumes in the future so the response to  market needs will be smoother.

Volkswagen Golf GTE – Quick specs:

  • 1.4-litre TSI petrol engine (110 kW/150 PS), a 75 kW/102 PS electric motor and a six-speed dual-clutch gearbox developed specifically for hybrid models
  • up to 50 km (31 miles) in all-electric mode (NEDC), with its total range being around 880 km (547 miles)
  • 8.7 kWh lithium-ion
  • Charging time: AC 2.3 kW 100% SOC in 3.45 h or AC 3.6 kW 100% SOC in 2.15 h
  • Acceleration 0-80 km/h (50 mph) in 4.9 seconds / 0-100 km/h (62 mph) in 7.6 seconds
  • Top speed 222 km/h (138 mph)
  • Fuel consumption in Combined cycle 1.8 – 1.6 l/100km and 12 – 11.4 kWh/100km
  • Kerb weight (EU, incl. 75 kg driver) 1,615 kg

Source: Volkswagen via Autocar

Categories: Volkswagen

Tags: ,

Leave a Reply

47 Comments on "Volkswagen Halts Golf GTE Orders Due To “Unprecedented Demand”"

avatar
newest oldest most voted
It's all about the Juice
Guest
It's all about the Juice

Batteries?

Lawrent
Guest
Lawrent

Volkswagen going through Production Hell?

Just_Chris
Guest
Just_Chris

Management hell – GM and Ford have similar issues with Mazda and Fiat having similar but much more serve problems. They are producing exactly as many as they planned to their plan is just wrong because their management are d**kheads.

earl colby pottinger
Guest
earl colby pottinger

BUT, But, but, I was told Tesla was doomed, doomed I tell you because these companies would produce so many electric cars that they would swamp the market and kill demand for Tesla cars.

How can they be limited in production? I was clearly told that these mega companies could produce millions of cars if needed to grab the market.

Was I lied to by people like SeekingAlpha?

Martin Winlow
Guest
Martin Winlow

Well, it isn’t ‘electric’ so your point is moot!

Chipper6
Guest
Chipper6

+1

They are not investing enough in battery production. Much like the other oem’s, hoping this EV thing would just go away…

Pushmi-Pullyu
Guest
Pushmi-Pullyu

Yup, reality is finally sinking in about the growing gap between supply and demand for EV batteries.

And to all those people who said I was wrong about auto makers needing to invest in their own battery factories, as BYD and Tesla have:

Here’s your plate of crow. Eat up!

Jason
Guest
Jason

Really makes you wonder why Nissan sold off AESC(?) battery business.

William
Guest
William

Because of two main factors, cost of battery production, and the joint ownership conflict in reducing cost of production. The Chinese can do it better, for a less expensive cost basis.
LG Chem is dropping batteries and the associated costs to manufacturers way faster than doing in house like AESC.

QCO
Guest
QCO

Not so fast, llama breath… You’re theory is speculation.

VW does understand that reliable manufacturing is based on forward planning and supply chain allocations (something Tesla has yet to master). In this case it is clear their demand planning was too low compared to actual demand. Had the plan been higher, there is no doubt the suppliers would have been contracted to built capacity to suit. That’s how the supply chain works.

Besides, instead of spewing “eat crow” vitriol, you should be celebrating the fact that real demand has outstripped supply in this case. That’s a strong electrification momentum message that will not be lost on VW product planners or management.

It’s becoming clear that VW has reached the tipping point, regardless of product development cycle time complaints. And that’s a good thing.

QCO
Guest
QCO

… Your … (auto correct error)

Martin Winlow
Guest
Martin Winlow

Why should we be happy that VW is putting yet more ICEVs on our roads? Were they real EVs you might have a point.

Prsnep
Guest
Prsnep

“… hope this EV thing would go away”

This kind of conjecture has got to stop. For one it’s tiring to read in every thread. Secondly, it’s unsubstantiated. And third, it makes no sense. Every large automaker knows EVs are here to stay and is investing billions of dollars to keep up. (Perhaps with the exception of 1 or 2.)

Big Show
Guest
Big Show

Gotta hand it to VW, they really know how to throw in a plot twist:
Now, the world is expecting leadership after the dieselgate scandal and people want our EVs. Should we increase production? No, let’s suspend orders. They’ll never see it coming!

Robert U
Guest
Robert U

+1 Lol

Prsnep
Guest
Prsnep

Wow, people running VW must have IQ of 50.

(⌐■_■) Trollnonymous
Guest
(⌐■_■) Trollnonymous

A mature company that’s been building cars for years has a bottleneck?!?!?!?!?

Now is this statement correct for A mature company that’s been building cars for years?

“double output to 70 cars a day (up to 2,100 a month)”

mx
Guest
mx

Yes, this is strange as a compliance car/factory should be able to produce 30,000, to pick up the full benefit from CARB.

What’s going on?

Krona2k
Guest
Krona2k

So they recently advertise this on TV in the UK, where they emphasised the petrol over the electric (grrrr). Then they get surprised by increased demand.

Not good for a company that keeps stating they’re going to be number one with plugins ‘soon’.

mx
Guest
mx

Leasing a BMW i3 would show them.

ffbj
Guest
ffbj

What, production bottlenecks? But what about all the competition for the ev market that VW is supposed to supply against Tesla, and all their decades of expertise.

realdb2
Guest
realdb2

I’ve posted this several times before but it applies here too:

IMO big auto knows they need to be ready for electrification, they know the future is electric. But I also think big auto would like the transition to take as long as possible to protect their ICE profits. Right now the profit margin on ICE vehicles is exponentially higher than EVs for big auto.

This article is just another example of big auto dragging their feet.

Intellectually I can understand their position, I would probably do the same thing if I were in their shoes, or if I was a stock holder.

Emotionally I’m becoming more and more frustrated by these things. Frustrated to the point where I’m becoming nauseated by announcements of electric cars 5+ years away.

The future of transportation is electric, let’s go!

Tom
Guest
Tom

Duh…They should be able to crank out thousands of these GTEs and bring them to the US too. But the margins too low compared to the others. The reason 2020 keeps coming up is basically by then there will be fairly close to parity.

Heybiff
Guest
Heybiff

NO, 2020 keeps coming up because in most regular people’s minds, 2020 is FAR away. They might as well be saying 2025. VW knows they have an excellent product in the e-Golf, they just refuse to make more because they loose money everywhere except Europe. Hence low production and limited availability, and end of life 2years before I.D. production.

Tom
Guest
Tom

It’s the exact same reason the A3 Audi eTron or whatever in the US gets volume at the beginning of the model year then quits. Note this month’s volume is up. Now getting 2018 models I bet and once that’s all used up even when metered out slowly then ok done. Probably same assembly line or factory as the Golf since it’s the same basic vehicle. Just not enough margin for comfort yet. They aren’t paid to make cars. They are paid to make money.

Prad Bitt
Guest
Prad Bitt
mx
Guest
mx

Ouch.

Prad Bitt
Guest
Prad Bitt

Well said! While they protect their profit, nobody charge them for the environmental crimes jeopardizing the global ecosystems and species.

CEOs of those criminal companies not going full electric should be jailed, along with oil/coal/gas corporations CEOs.

gab
Guest
gab

in 2020 the margin of EV will be the same than ICE cars, then a Tsunami will come.

L'amata
Guest
L'amata

I believe VW Halted Golf Orders, But, “NOT” Due to “Unprecedented Demand”…lol….I Do believe however that they Halted Orders Due to the “Lac” of Batteries to complete the assembly Process., If they should Indeed have the such high Demand that they claim to have.. Giga Giggles…. ha ha

Pedro
Guest
Pedro

VW does not want to sell electrified cars so the public will remain ignorant.
If they wanted to sell electrified cars, it was enough to make the Golf Variant GTE available and dominate the market. But they do not want to dominate the electric market, but the ICEs.

John in AA
Guest
John in AA

“Production hell”

jelloslug
Guest
jelloslug

I thought mature auto manufacturers would never have issues like this….

Anti-Lord Kelvin
Guest
Anti-Lord Kelvin

In March 2016, at Stuttgart, Porsche chief (at that time) Matthias Mueller said, “Tesla has built an exceptional car. They have a very pragmatic approach and set the standard, where we have to follow up now.”
Then, in May of this year another VW official (Herbert Diess, responsible for the brand name) said, “anything Tesla can do, we can surpass.”

So, they are surpassing Tesla’s…production bottlenecks?:)

Tyler
Guest
Tyler

Profit margins. Lol. They probably lose thousands every car they sell.

Some Guy
Guest
Some Guy

Nope, VW does not loose money on any cars sold (except when they get caught cheating and are slapped with billions of dollars of fines).
However, they plan ahead and make contracts for a supply in parts. Despite the efforts to sell only few PHEV and BEV, the demand is higher than foreseen, but the parts (i.e. the batteries) are just not there. Those contracts are also usually long term, meaning that they did not anticipate high battery demand for the next 1-2 years to come. So the manufacturers have not committed in building / reserving capacities for VW. So VWs shortage will continue for a while.

Just_Chris
Guest
Just_Chris

Don’t worry VW it will all ease off once the model 3 and leaf 2.1 (60 kWh) are established.

Pushmi-Pullyu
Guest
Pushmi-Pullyu

It won’t “ease off” until Volkswagen and other large auto makers bite the bullet and spend billions on building their own high-volume battery factories, as BYD and Tesla have done.

Waiting for existing battery makers to crank up production just won’t work, as Tesla repeatedly found over the past several years. Battery makers are not building out new production until they have contracts in hand for delivery.

Jason
Guest
Jason

“Hi, I want to buy an e-Golf”
“Sorry, we aren’t taking orders at the moment”
“No problem, I’ll get a different brand EV”
So VW are essentially happy to see their customer go elsewhere, and we all know once you lose a customer the chances are it takes a lot of time and effort to get them back.
Now what an interesting situation, e-Golf has about 8kWh battery and they are having trouble (I’d guess it is a battery supply issue as all the other components should be pretty standard parts), doesn’t look good for when they need 60kWh+ for all these 2020 models they keep bragging about. But they never said what quantities for those 2020 models, so maybe only 70 per day as well. Good luck getting your VW EV any time in the future. At 70 per day they are only looking at 25,000 annually so hardly that big a target.

Mister G
Guest
Mister G

Not surprised LOL VW sells gas guzzlers CONNECT THE DOTS WAKE-UP

Steven
Guest
Steven

I’m not going to say it.
I’m not going to say it.
I’m not going to say it.

Bill Howland
Guest
Bill Howland

I look at this as a contrast between GM and VW.

Both companies are major players in the auto marketplace, yet GM comes out with the vehicles they say they will.

And for a while at least, all the chevy dealerships had 20 copies of (for Buffalo , NY) the poorly selling BOLT ev. The only shortages were of the VOLT, a vehicle much better suited to this area, to be perfectly honest.

Now go to a VW dealership, and most will have absolutely NONE of either PHEV or BEV models, and I had to drive to Rochester to find 2 broken down 2016 Egolfs (broken since they were returned when previous owners found out they really can’t go far in the wintertime).

The dealership admitted to me that VW merely wants to ‘stay in the (pretend) game’.

VW the world’s LARGEST manufacturer of ELECTRIC MODELS truly does not want to make electrics, and if they hadn’t been seriously damaged by their Diesel nonsense, they still would be doing next to nothing.

Unfortunately, VW sales of ICE only vehicles greatly increased in the states last year, thus ‘proving’ to management the beauty of their policy.

JoeInTheUK
Guest
JoeInTheUK

Please stop repeating the incorrect story that VW doubled production of eGolfs. They doubled production in one of the two factories that makes them, and that was the one that made the smaller amount.

So in reality they raised it by somewhere around 20-30%.

Brave Lil' Toaster
Guest
Brave Lil' Toaster

What’s that Volkswagen? You’re going to beat Tesla in production volume?

https://www.cnet.com/roadshow/news/volkswagen-wants-to-beat-tesla-at-its-own-game/

I’ll believe it when I see it.

Steve Jobs
Guest
Steve Jobs

So many stupid comments !!!
Which part of “ORDERS ON HOLD” didn’t you guys understand ??
It’s NOT production on hold … ITS ORDERS !!
The waiting list for the e-Golf is NINE MONTHS … even with the added a second shift.The waiting time for the GTE is seven months.
So they did the right thing and were honest for once so people do not have to wait indefinitely !

Paulo Almeida
Guest
Paulo Almeida

Right on !!

Heybiff
Guest
Heybiff

I would love for VW to read webpages like this and see the emotion that their product brings out in people. But they don’t, and won’t, and thus things will continue as they have. If VW announced a 2019 model e-Golf with @175-190mi range, and upped production to 6 digits a year they could probably dominate the market while supplies lasted, and certainly until the I.D. was ready. The e-Golf sold well in the U.S. without any real advertising outside of CA. But they won’t.