Scrapping subsidies has a negative impact
Volkswagen is cutting 269 temporary jobs at the Zwickau factory where, among other things, the ID3 and ID4 are built. The reason would be a declining demand for these electric cars, especially in Germany itself.
‘Zwickau’ can safely be seen as the electric flagship among Volkswagen factories. In addition to the ID3 and ID4, the ID5 and the Cupra Born are also built here, although not exclusively. Contrary to expectations, the fact that this is such an important EV location now has a significant disadvantage for the factory near the Czech border. In Germany, an important purchase subsidy for entrepreneurs has been canceled as of September 1. That would have immediately led to a 70 percent drop in sales of electric cars, so Volkswagen is forced to cut the 269 temporary jobs.
It may not stop there, reports the ANP. ‘Sources’ are said to have indicated that other temporary contracts in the factory are also being critically examined. Volkswagen is said to have merely cited ‘current market conditions’ as an explanation, in combination with high inflation. The brand also states that it will continue to invest in the factory in Zwickau, which currently employs a total of 10,700 people.
– Thanks for information from Autoweek.nl