Volkswagen has announced that it is terminating the contracts of 269 workers on fixed-term contracts at its plant in Zwickau, located in eastern Germany. This measure due to a slowdown in demanda spokesman for the group confirmed during the performance.

The plant in Zwickau, in the Saxony region of the former German Democratic Republic, has long been considered Volkswagen’s pearl in the field of electric mobility. The factory currently employs more than 2,000 temporary workers as part of the total workforce 10,700 employees. However, the reduction in orders has forced Volkswagen to decide to terminate the contracts of these 269 employees, whose contracts expire at the end of October.

Fewer orders = less work

The decline in demand is attributed to several factors, including persistent inflation affecting consumer purchasing power, the economic recession and the expiration of incentives for the purchase of commercial electric vehicles from year 1.^Er September. This was emphasized by the representative of Volkswagen these elements contributed to the current situation.

In addition, Volkswagen is facing increased competition from Tesla and a growing number of Chinese automakers in the electric car market, which has also affected the German firm’s sales.

The news of the loss of these jobs was met with sadness by the employees and their families. Thomas Knabel, local representative of the IG Metall union, expressed his concern in a statement, describing the decision as “A personal disaster for 269 people and their families. »

Volkswagen is still confident

Despite these difficulties, Volkswagen has invested billions of euros in recent years to make the transition to electric mobility. Factory Zwickau, which produces electric vehicles for six brands of the groupis playing a central role in this transformation, having invested €1.2 billion over the past few years, according to a company spokesperson.

The IG Metall union criticized the plant’s management for leaving workers in limbo in recent weeks, creating “mass insecurity among personnel and throughout the region”. However, the union also expressed its willingness to work closely with management to find a solution to this difficult situation.

In addition, European Commission President Ursula von der Leyen recently announced the launch of an investigation into Chinese subsidies for electric vehicles. The measure has been welcomed by EU producers who believe it is a necessary response to what they see as unfair competition.

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