German automotive giant Volkswagen has resumed full-scale electric vehicle (EV) production at its Dresden and Zwickau plants; however, jobs are still at risk if demand does not pick up.
It was reported in late September that Volkswagen would suspend production of the ID.3 and Cupra Born EVs at its Zwickau and Dresden production plants across the first two weeks of October due to weaker demand.
A Volkswagen spokesperson told Reuters that vehicle production would be reduced during the autumn holidays in Saxony from October 2 to 13. This resulted in one production line being idled at Zwickau and all production halting at Dresden.
Regional German newspaper Sächsische Zeitung reported on Monday, however, that production had resumed at normal levels.
Volkswagen is still concerned about demand, and Sächsische Zeitung reported that the company has warned that 2,200 jobs could be cut at Zwickau if demand does not pick up.
The news comes a fortnight after it was similarly reported that Volkswagen had scrapped plans for an additional EV factory in Wolfsburg, a decision it blamed on weak demand.
Volkswagen already confirmed that it would cut 269 employment contracts at its all-electric Zwickau production facility due to “current market conditions”, and also terminated its long-standing three-shift agreement with workers at Zwickau.
Zwickau currently employs around 10,700 people, but contracts for 2,200 employees are set to expire in the next two years, jobs that could be lost if the demand for Volkswagen EVs made at Zwickau don’t improve.
VW said this week that global EV deliveries had increased by 45% over the first 9 months of 2023, “despite the current general reluctance in the European market to buy battery-powered vehicles”.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.