As reported recently Volkswagen’s largest EV production unit in Europe is at risk of losing jobs due to ongoing low demand. To convey these things, the automaker scheduled a staff meeting on Thursday, where it is predicted to pass on the news to workers.
The Volkswagen plant in Zwickau, Germany, is where MEB-based electric cars are produced. The range comprises the ID.3, ID.4, and ID.5. While the other brand EVs, including the Audi Q4 e-tron and Cupra Born are also produced here in this plant. Furthermore, the automaker declared it was investing $1.29 billion in 2018, in order to transform the plant for EV production.
The plant is also entitled to successfully transform from combustion engine vehicles to EVs in 26 months, to keep the work at pace. Alternatively, the competition from automakers like Tesla and other Chinese EV makers has drastically increased and substantially expanded in VW’s homeland as well as abroad.
In addition to this, the higher inflation and little subsidies are gradually weakening the demand. As reported by the German newspaper Automobilwoche, Volkswagen is estimated to cut jobs in response.
Volkswagen appears to cut jobs at the Zwickau EV plant
However, there’s no official revelation from Volkswagen in regard to the possible job cuts. The company’s plans were disclosed by Saxony Prime Minister Michael Kretschmer, who comments while attending an event.
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.”
It is predicted that the job-cuts action could affect over 11,000 employees at the end of October. So far this number is not confirmed and can fluctuate. Meanwhile, Saxony’s Economic Minister Martin Sulig also expressed concerns:
“It is a serious situation. We want to show the employees a positive perspective, but we cannot always discuss possible solutions publicly right away.”
Also, the situation has intensified, with the decline in demand and a gloomy outlook. As a result of the same, dealers started to report declining interest in Volkswagen Passenger Car’s three MEB electric models.