VW Sachsen Faces Further Job Cuts Due to Weak E-Car Demand

The Decline in Electric Car Demand Hits VW Production in Zwickau

Volkswagen in Zwickau continues to struggle with weak demand for electric cars, impacting production levels. Both national and state-level political decisions are being held responsible for this downturn.

Due to the low demand for electric cars, more temporary employees at Volkswagen in Zwickau are facing job insecurity. Reports suggest that 1,000 to 1,200 contracts may expire by the end of 2025. A final decision is expected in August, according to a company spokesperson. This information was initially reported by the “Freie Presse.” Currently, the electric car factory employs approximately 9,400 workers.

Temporary Contracts and Market Dependency

To launch its electric mobility efforts, Volkswagen increased its workforce in Zwickau with about 2,700 temporary employees. Over 500 of these were made permanent last year, but due to the weak demand for electric cars, 269 employees had to leave by the end of 2023. This year, the plan included cutting an additional 500 jobs. Further reductions are not unexpected, as the company has consistently stated that the extension of temporary contracts is dependent on market conditions. The current market remains tense, with insufficient new orders coming in.

Transition to Two-Shift Operations

Volkswagen Sachsen announced several weeks ago that it would advance the transition to a two-shift operation in Zwickau due to weak demand. As early as November, the third shift for one of the two production lines was already cut. The overall switch for the plant is scheduled to be completed by August.

Political Responsibility and Infrastructure Issues

Sabine Zimmermann, state chair of the Bündnis Sahra Wagenknecht (BSW), attributed significant blame for the weak demand for electric cars to both federal and state politics. “Proper infrastructure for charging stations should have been established before declaring a major energy transition, leaving frustrated buyers in the lurch. This approach risks derailing the environmentally crucial energy transition,” she stated.