The German group would consider making almost 300 redundancies in Zwickau in October, when the contracts expire. Another 2 thousand jobs are at risk
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Increased competition, especially from Tesla at this stage, and the gradual elimination of subsidies for the purchase of electric cars in Germany are factors that weigh on Volkswagen Group’s choices. The drop in orders would have led to the decision to fire almost 300 employees at the Zwickau plant (a city in Saxony an hour’s drive from the Czech Republic) when their contracts expired in October, according to sources within international agencies. The fate of around 2,000 additional temporary employees remains uncertain. A final decision has not yet been made.
Zwickau is the group’s main plant dedicated to the ecological transition in Germany and the Volkswagen ID.3, ID.4, ID.5, but also Cupra Born, Audi Q4 e-tron, Audi Q4 e-tron Sportback are produced on the Meb platform . The production average is around 1,400 cars per day (Tesla has reached up to 5 thousand in its gigafactory in Berlin). VW had planned to produce up to 330,000 vehicles a year in Zwickau, making it one of Europe’s largest factories.
Fleet orders, which accounted for around 70% of VW-branded electric vehicles produced in Zwickau, have plummeted since incentives for company electric cars expired in September, one of the sources revealed. But the phase-out plan has already excluded plug-in hybrids from incentives this year (between 6,750 and 5,625 euros depending on the price range). For battery-powered cars the price has dropped from 7,500 to 4,500 euros for cars costing up to 40,000 to 65,000 euros and from 9,000 to 6,750 for cars costing up to 40,000. In 2024, only cars above up to 45 thousand euros will be subsidized but with a total of 4500 euros (the sum must always be divided between the buyer and the manufacturer).
The change in federal policies therefore seems to impact sales and employment choices. In the first six months, VW delivered 321,600 fully electric vehicles (BEVs) to customers globally, compared to 217,200 in the same period last year. In Europe, the Wolfsburg group is the market leader in the BEV segment and has gained ground and market share, with deliveries increasing by 68% to 217,100 vehicles (128,900 in the first half of 2022). This is thanks to the strength of the numerous arrows available, the 12 brands. Looking at the models, Tesla still dominates in Europe in the first half of the year with over 136 thousand Model Ys and over 42 thousand Model 3s (overall +117%). Two Vw models follow, ID.4 and ID.3. with 41,660 (+82%) and 45,200 (+104%).
The fear, which is well founded, is that the weak economy, with Germany in recession and the higher costs weighing on families due to inflation, will weigh on the demand for cars. Just as the big one opened Auto show in Monaco (IIA Mobility), the German Statistical Office said production in the German automotive sector fell 9% in the quarter and fueled a downturn in German industry, with output falling for the third consecutive month in July : -0.8%, worse than the -0.5% forecast by a Reuters poll.
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2023-09-14 10:41:41
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