The Volkswagen plant in Zwickau, Germany, is where MEB-based electric cars are built, including the ID.3, ID.4, and ID.5. Other VW brand EVs, such as the Audi Q4 e-tron and Cupra Born, are also manufactured here.
Volkswagen announced it was investing $1.29 billion (1.2 billion euros) in 2018 to transform the plant for EV production.
The plant was successfully converted from producing combustion-engine vehicles to EVs in 26 months to keep the workforce stable. Meanwhile, the competition, like Tesla and Chinese EV makers, are rapidly expanding on VW’s home turf (and abroad).
On top of this, higher inflation and less subsidies are weakening demand. According to the German newspaper Automobilwoche, Volkswagen is expected to cut jobs in response.
Volkswagen cutting jobs at Zwickau EV plant
Although Volkswagen has yet to comment on the possible job cuts, the company’s plans were leaked by Saxony Prime Minister Michael Kretschmer’s comments at an event (first reported by Bild).
Kretschmer said, “In the next few days, maybe even hours, we will hear unfortunate news. We were proud of what is happening in Saxony at Volkswagen with electromobility, what is going on.” Adding, “It’s not going to be that successful in the end. A whole bunch of colleagues will no longer be able to work there, at least temporarily.”
The report notes it could affect a few hundred (of the 11,000) employees at the end of October. However, this number is not confirmed.