By P Gosselin
VW announces 1000 layoffs at large electric-vehicle plant in East Germany as demand slips and market turbulence persists
Blackout News here reports that Volkswagen is planning to cut another 1,000 jobs by the end of 2024 at its factory in Zwickau, Germany. The demand for electric vehicles (EVs) remains weak and turbulent.
The news is another blow to a region already gripped by economic and political uncertainty, and underscores how Germany’s green master plan remains an illusion.
The Zwickau plant still employs about 9,400 workers and exclusively produces vehicles with electric drives.
“The move is a result of slow sales of EVs,” reports Blackout News. “The automotive industry is currently experiencing a turbulent phase. Many companies are increasingly focusing on electro-mobility, but consumers remain hesitant. High purchase costs, limited range and an inadequate charging infrastructure are some of the reasons that are deterring potential buyers.”
Despite the bad news, Zwickau remains an important location for the production of electric vehicles at VW. How long this will continue as such remains to be seen.
“The cutbacks mainly affect fixed-term employment contracts, which increases uncertainty for many employees. Many employees in Zwickau fear for their future, as fixed-term contracts are expiring and there are no new jobs in sight,” reports Blackout News.
The prospects for the future of electric cars in Germany remains highly uncertain, and will depend on very much on whether or not electric vehicles will ever gain acceptance from wary buyers. issues surrounding technical feasibility still remain unresolved. As much as governments would like to promote them, their technical realities are there and cannot be discussed away.
Blackout News summarizes with optimism: “It can be said that the automotive industry is undergoing a transformation process that harbors both opportunities and risks. VW in Zwickau is an example of the challenges and necessary adjustments in this transition phase.”
Assuming the “transition phase” ever gets completed.
Blackout News is operated by an independent and non-partisan small group of engineers with experience in energy management.
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