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VW Plans to Boost Electric-Car Production in Germany

  • Supervisory board members scheduled to meet next week
  • Investment plans, Ford talks among key topics to be discussed
Automobile Production Stations At Volkswagen AG's Headquarters Ahead Of Earnings
Photographer: Krisztian Bocsi/Bloomberg

Volkswagen AG may expand electric-car production at higher-cost factories in Germany, according to people familiar with the matter, to ensure plants have enough workload and avoid clashes with powerful labor unions.

VW plans to boost battery-vehicle production at Zwickau in Eastern Germany beyond 100,000 vehicles annually and might add e-cars in Emden, said the people, who asked not to be identified as the talks aren’t public. VW has repeatedly idled Emden for some days because of waning demand for the mid-size Passat sedan. The plan potentially raises the bar on efforts to offer more affordable battery vehicles than Tesla Inc. without eroding profits.