Volkswagen is cutting almost 300 temporary jobs at its flagship electric car plant in Zwickau, the German auto giant said Thursday, as it struggles to gain a foothold in the EV market.
“Given the current market situation, we are unable to extend the 269 fixed-term contracts which are coming to end soon after their 12-month term,” said a company spokesman.
VW added that it remained “100 percent convinced” by its pivot towards e-mobility and that the Zwickau site will continue to “play a central role”.
But union IG Metall spokesman Thomas Knabel called the decision a “personal catastrophe for the 269 people affected and their families”.
Volkswagen has poured billions into the transition towards electromobility, vowing to take on the likes of Tesla and competition from China.
But the 10-brand group — whose marques include Audi, Seat and Skoda — is facing tough competition in the electric vehicle sector, particularly in key market China.
In the first half of 2023, Volkswagen’s deliveries of vehicles in China were down 1.2 percent compared to the previous year.
Tesla and Chinese manufacturers dominated the recent IAA auto fair in Munich, one of the world’s biggest.
The EU this week announced an investigation into Chinese state subsidies for electric cars, vowing to defend Europe’s industry from unfair competition.
Volkswagen said in March it would invest 122 billion euros ($130 billion) in the shift towards electric vehicles over the coming years.
The German giant said it was planning overall investments of 180 billion euros between 2023 and 2027, of which 68 percent would be spent on electrification and digitisation.
VW said “a major reason” for the spending increase was its push to build a series of battery factories.
By AFP
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