Categories: News

Volkswagen to cut several jobs at its electric car factory

Volkswagen will let go of 269 fixed-term employees at its Zwickau factory, in eastern Germany, due to “fading demand”.

Volkswagen has announced that it will terminate the contracts of 269 workers on fixed-term contracts at its Zwickau factory, located in eastern Germany. This measure, driven by a slowdown in demandwas confirmed by a spokesperson for the group during a speech.

The factory in Zwickau, in the Saxony region, formerly in the German Democratic Republic, has long been considered Volkswagen’s jewel in the field of electromobility. Currently, the factory employs more than 2,000 temporary workers, part of a total workforce of 10,700 employees. However, the reduction in orders led Volkswagen to take the decision to terminate the contracts of these 269 employees, whose contracts will expire at the end of October.

Fewer orders = less work

The decline in demand is explained by several factors, including persistent inflation which affects the purchasing power of consumers, an economic recession, and the expiration of incentives for the purchase of commercial electric vehicles since 1is september. The Volkswagen spokesperson stressed that these elements had contributed to the current situation.

Additionally, Volkswagen is facing increased competition from Tesla and a growing number of Chinese automakers in the electromobility market, which has also impacted the German firm’s sales.

The news of the loss of these jobs was greeted with sadness by workers and their families. Thomas Knabel, local representative of the IG Metall union, expressed his concern in a statement, describing the decision as a “personal disaster for the 269 people concerned and their families. »

Volkswagen still confident

Despite these difficulties, Volkswagen has invested billions of euros in recent years to make its transition to electric mobility. The Zwickau factory, which manufactures electric vehicles for six brands of the groupplays a central role in this transformation, with an investment of 1.2 billion euros over the last few years, according to the company spokesperson.

The IG Metall union has criticized factory management for leaving workers in uncertainty in recent weeks, creating a “massive insecurity among staff and throughout the region”. However, the union also expressed its willingness to work closely with management to find solutions to this difficult situation.

Furthermore, the President of the European Commission, Ursula von der Leyen, recently announced the opening of an investigation into Chinese subsidies for electric cars, a measure welcomed by EU manufacturers who believe that it constitutes a necessary response to competition that they consider unfair.

Read also :
• Volkswagen Golf 9: we know more about its engine
• Why will the Volkswagen group produce fewer cars in the coming weeks?
• Volkswagen ID.X Performance Concept: a 550 hp electric sedan in preparation?

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