VW cuts shifts at Zwickau plant on lackluster EV demand

Volkswagen has cut the number of shifts at its all-electric plant in Zwickau, Germany to keep the site viable as it reacts to subdued demand for electric cars.

As of this week, VW has cut production in Hall 5 to two shifts, down from a previous three-shift operation, Automotive News Europe sister publication Automobilwoche reported.

The VW ID3 and Cupra Born models are both produced in Hall 5.

"The decision ensures productive operation and the future viability of the site," a VW spokesperson said.

In September, VW said it would cut staffing at the Zwickau plant, the first group factory to be completely converted to EV production.

In October, the automaker temporarily halted production of the Audi Q4 E-tron, the Audi Q4 Sportback E-tron, as well as the VW ID4 and VW ID5 models at Zwickau due to limited capacity.

VW is struggling to battle Tesla’s global dominance and sell sufficient made-in-Germany EVs. Industry experts forecast lean demand for the next two years.

Slowing EV demand is also affecting workers at other automakers. Numerous contracts for temporary employees have not been renewed, while many without permanent employment fear for their jobs.

“The aim now is to reach the best possible arrangement,” Automobilwoche cited Thomas Knabel, trade union representative of IG Metall Zwickau, as saying. “The concern remains as to where the journey will take us.”