Volkswagen's Largest Plant In Europe Faces Job Cuts Amid Dwindling EV Sales

Volkswagen’s most significant electric vehicle (EV) production facility in Europe is bracing for potential job cuts due to decreased demand. A staff meeting is scheduled for Thursday to convey this news to the employees, according to a report by Electrek.

The Volkswagen VWAGY plant, located in Zwickau, Germany, is the production hub for MEB-based EVs, including the ID.3, ID.4, and ID.5 models, among others. In 2018, the company invested $1.29 billion to transform the plant for EV production.

Despite successfully transitioning from combustion engines to EV production in 26 months, the automaker now faces increased competition and lessened demand due to inflation and reduced subsidies. The German newspaper Automobilwoche anticipates Volkswagen responding with job cuts.

See Also: Ford’s ‘Help A Stranded Tesla Driver’ Remark At New F-150 Unveiling Triggers Elon Musk Fans: ‘What A Joke

Saxony Prime Minister Michael Kretschmer hinted at the impending cuts, stating, “In the next few days, maybe even hours, we will hear unfortunate news…A whole bunch of colleagues will no longer be able to work there, at least temporarily.”

The report suggests a few hundred of the 11,000 employees could be affected by the end of October, although these figures are not confirmed.

Meanwhile, the European Union has launched an investigation into Chinese EV imports’ surge in 2023, citing unfair competition due to state subsidies benefitting these manufacturers.

Read Next: Gamers are selling their old gaming items for millions. Learn why everyday gamers and investors are claiming a stake in their side hustle and how they invested over $1.2 million in this startup.

Photo by Gyuszko-Photo on Shutterstock