Volkswagen expected to initiate job cuts at Zwickau EV plant: report

Key Points

• 👷 Volkswagen’s EV plant in Zwickau, Germany, is planning job cuts, affecting about 2,500 temporary workers at the complex.
• 🚗 The Zwickau plant has been producing electric vehicles exclusively since January 2022, including models like the ID.3, ID.4, and ID.5, as well as other EVs like the Audi Q4 e-tron.
• 🗞️ Reports indicate that a works meeting is scheduled to inform employees about the situation, and Saxony’s Prime Minister Michael Kretschmer has hinted at the staff reduction measures.
• 📊 The job cuts are expected to impact a few hundred employees out of the current 11,000 working at the facility, though the exact number hasn’t been confirmed yet.
• ⚡ Demand for Volkswagen’s MEB vehicles, including the ID.3, ID.4, and ID.5, appears to be lower than expected, and subsidies for electric cars are also declining.

Volkswagen’s electric vehicle plant in Zwickau, Germany, is expected to implement a round of job cuts. Reports suggest that about 2,500 temporary workers at the West Saxony complex will be affected. 

Volkswagen’s Zwickau plant, which has been exclusively producing EVs since January 2022, is a core component of the veteran automaker’s electric vehicle strategy. The facility produces cars that are based on the company’s MEB platform, such as the ID.3, ID.4, and ID.5, as well as other EVs like the Audi Q4 e-tron. 

The veteran carmaker has not issued a statement about the matter. That being said, Germany-based motoring publication Automobilwoche reported that a works meeting is scheduled on Thursday morning that would inform employees about the current situation. 

Statements from Saxony’s Prime Minister Michael Kretschmer also hinted at the reported job cuts at the Volkswagen Zwickau plant. As per a report from BILD, Kretschmer noted that the Zwickau facility has been doing good work, but the staff reduction measures will be implemented. 

“In the next few days, perhaps hours, we will hear unfortunate news. We were proud of what was happening at Volkswagen in Saxony with electromobility and what was going on. Now we see: it’s not that successful in the end. A whole number of colleagues will no longer be able to work there, at least temporarily,” the official said during a CDU event in Riesa.

Reports suggest that the impending job cuts would affect a few hundred employees from the current 11,000 that work at the facility, though this number has not been confirmed yet. Saxony’s Economics Minister Martin Dulig (SPD) did express some concern about the situation, however. 

“It is a serious situation. We want to show the employees a positive perspective, but we cannot always discuss possible solutions publicly right away,” the minister said. 

Since January 2022, Volkswagen’s Zwickau plant has been producing electric vehicles, and so far, the facility has seen a pretty fair ramp. Last year, 218,000 electric cars were assembled at the site, which is very impressive. Demand for the company’s MEB vehicles, however, seems to be below Volkswagen’s expectations. Reports note that sales of Volkswagen’s ID vehicles are slowing down, and dealers argue that there is little customer interest in the ID.3, ID.4, and ID.5. Subsidies for electric cars are also declining.