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27.09.2023 04:50, Alexey Razin
Volkswagen’s two electric vehicle manufacturing plants will remain idle for at least part of October and hundreds of workers will be laid off as demand for the type of vehicle in Europe declines amid worsening economic conditions and authorities refusing to subsidize related purchases.
Image source: Volkswagen
According to information Bloomberg, at the Zwickau plant, production of the Volkswagen ID.3 and Cupra Born electric vehicles will be reduced until October 16, and ID.3 assembly at the Dresden plant will be completely stopped in the first two weeks of October. In the second half of the month, Volkswagen expects to resume production of electric vehicles at these European plants, but 269 workers whose annual contracts expire this fall will have to leave the Zwickau site. Employees were initially hired on a temporary basis, so this optimization of the number of personnel is planned.
Up to 70% of Volkswagen vehicles produced in Zwickau are electric vehicles sold to corporate customers. This is the group’s largest enterprise in Europe, specializing in the assembly of electric vehicles. Demand for them began to decline due to the worsening economic situation in the region, and the problem was further aggravated by the authorities’ decision to stop subsidizing purchases of electric passenger vehicles by corporations in September. In August, this led to a surge in registrations of electric vehicles by legal entities by 171%, but in September demand in this direction decreased markedly.
2023-09-27 01:50:00
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