Volkswagen is cutting hundreds of jobs in its electric car factory in Zwickau. The company announced on Thursday after a works meeting that 269 fixed-term contracts that are about to expire after one year will not be extended. Shift work will probably also have to be adjusted. The specific procedure will be coordinated with the works council in the coming days. Sharp criticism came from the IG Metall. This is a catastrophe for the 269 people affected and their families, said union representative Thomas Knabel. There are also many open questions about future driving styles and personnel planning.
The reason given for the move was “the current market situation”. In view of inflation and declining purchase premiums, customers are holding back on electric cars. Only electric cars are built in Zwickau – for VW, Audi and Cupra. It is feared that the contracts of other temporary employees – currently around 2,200 according to information – will not be extended. A total of around 10,700 people work at the plant.
No course correction
“Volkswagen remains 100 percent convinced of the path to electromobility,” emphasized a spokesman. A course correction is not planned. At the works meeting it was made clear that the Zwickau plant was not up for grabs and that further investments would be made there. To date, it has been a pioneer of e-mobility within the company. In addition to the ID.3, ID.4 and ID.5 models, the Q4 e-tron and the Q4 Sportback e-tron from Audi as well as the Cupra Born are also produced there. The last combustion engine rolled off the assembly line in 2020.
Despite the sluggish capacity utilization of the plant, production of the Audi Q4 e-tron and the ID.3 is to be expanded to other locations. “We will also produce the Q4 e-tron in Brussels from the end of 2023 – in addition to production in Zwickau,” said an Audi spokeswoman. The ID.3 is also scheduled to roll off the production line in Wolfsburg from autumn – initially only in small numbers. The parts for final assembly are initially delivered from Saxony. Full production is planned in Wolfsburg next year.
Originally, six models from VW, Audi and Cupra were built exclusively there in Zwickau. VW also initially served the US market from Saxony and brought the ID.4 to America by ship. This further increased the already long delivery times for electric cars. VW now builds vehicles for the US market in Tennessee.
The ID.4 also launched in Emden in May 2022. The group gave away the second E-model from Cupra, the ID.5 sister model Tavascan China. It is scheduled to start production at the Anhui plant later this year. VW justified the location decision by saying that the capacity in Zwickau would not have been sufficient for the additional model.
IG Metall criticizes the way employees are treated
IG Metall criticized the treatment of temporary employees. In June, 540 contracts were terminated. However, everyone else was waiting for a clear perspective. Together with the core workforce, they all made a decisive contribution to the restructuring of the plant. The fact that they have been kept at bay for weeks about their future is a way of dealing “that we at Volkswagen are not familiar with and do not want to accept,” complained Knabel. He also criticized Prime Minister Michael Kretschmer. He asked him to take a more active role in the discussions about the future of the Zwickau location.
Despite current difficulties, the Automotive Cluster East Germany industry association does not see any move away from e-mobility. It was clear from the start that this change would be a rocky road, said managing director Jens Katzek of the German Press Agency. “Electromobility is a clear priority for the future. Nothing will change.” But this path must be taken together by politicians and companies. He complained about consumer uncertainty caused by political decisions. As an example, he cited bureaucratic hurdles in promoting electric cars. It is also important to expand the charging infrastructure.
There was also clear criticism from politicians of VW management. Those responsible must take a critical look at their work, warned SPD member of the Bundestag Carlos Kasper. “Because we also see: Other electric car manufacturers Germany Things are going better.” FDP MP Torsten Herbst sees the reasons for the sales problems in the model policy: “Different from, for example BMW “Volkswagen relies exclusively on battery-electric vehicles for its drives and is therefore solely dependent on the demand for electric cars.” Obviously, not all of VW’s new electric cars are so attractive that they are in high demand in Germany and Europe.