Volkswagen's largest electric car factory prepares layoffs

(Patria) - Due to a drastic drop in demand for electric vehicles, Volkswagen's largest electric vehicle factory in Europe is facing layoffs.

This concerns the factory in Zwickau, Germany, where electric models ID.3, ID.4, and ID.5 are produced. Alongside them, group models such as Audi Q4 e-tron and Cupra Born roll off the same production lines.

As early as 2018, Volkswagen announced it was investing 1.2 billion euros in the transformation of the factory, which converted production lines from internal combustion engine vehicles to electric vehicles in 26 months.

Meanwhile, competitors like Tesla and Chinese electric vehicle manufacturers are rapidly expanding on VW's home turf, and in addition, galloping inflation and reduced government subsidies are weakening demand.

As reported by Automobilwoche, Volkswagen is expected to cut jobs in response.

Although Volkswagen has not commented on possible layoffs so far, the company's plans leaked after comments by Saxon Prime Minister Michael Kretschmer, as reported by Bild.

- In the next few days, perhaps even hours, we will hear unfortunate news. We were proud of what was happening in Saxony related to Volkswagen's electromobility.

In the end, it won't be as successful. Many people will no longer be able to work there, at least temporarily - concludes Kretschmer.

Volkswagen has an employee meeting today, where the new, "unfortunate" news is expected to be conveyed to the workers, writes autoklub.hr.