Weak demand for e-cars: VW cuts shift
Volkswagen is reacting to the weakening demand for electric cars and has canceled a shift at the Zwickau plant. The management and works council have agreed on a new approach, a spokesperson explained in response to a dpa inquiry. Since this week, the production line in Hall 5, where the ID.3 and Cupra Born models are produced, has only been working two shifts instead of three. "Depending on the market situation, both production lines may be converted to a classic two-shift operation with early and late shifts next year," it said. "The decision ensures productive operation and the future viability of the site."
According to the company, the main plant in Wolfsburg is also practicing various forms of shift cancellations and adjustments. The cutbacks to the previous three-shift operation in Zwickau are not unexpected. In September, the management terminated a corresponding works agreement from 1991. The plant in Zwickau was the first in the Group to be completely converted to the production of electric cars. However, demand is developing less strongly than expected and e-cars are now also being produced at other VW and Audi sites. Production in Zwickau was therefore temporarily scaled back in October and only one of the two production lines is currently running.
Experts expect a lean period of around two years. This also has consequences for employment. A number of expiring contracts of temporary employees have not been extended and many others without permanent employment are fearing for their jobs. More than 10,000 people work at the Zwickau site. VW is planning to build a new model there in the future: The Trinity model, originally intended for Wolfsburg, is to be produced in Saxony in a few years' time. This would make the site the first to use the new SSP platform.
The weakening demand for electric cars has led Volkswagen to reduce operations at the Zwickau plant, shifting from three shifts to two for the ID.3 and Cupra Born production lines. The car industry is currently experiencing challenging times, with VW implementing shift cancellations and adjustments at its main plant in Wolfsburg as well.
Source: www.dpa.com
