Volkswagen’s largest EV production site in Europe is at risk of losing jobs amid low demand. The automaker is holding a staff meeting on Thursday, where it’s expected to relay the news to workers.
The Volkswagen plant in Zwickau, Germany, is where MEB-based electric cars are built, including the ID.3, ID.4, and ID.5. Other VW brand EVs, such as the Audi Q4 e-tron and Cupra Born, are also manufactured here.
Volkswagen announced it was investing $1.29 billion (1.2 billion euros) in 2018 to transform the plant for EV production.
The plant was successfully converted from producing combustion-engine vehicles to EVs in 26 months to keep the workforce stable. Meanwhile, the competition, like Tesla and Chinese EV makers, are rapidly expanding on VW’s home turf (and abroad).
On top of this, higher inflation and less subsidies are weakening demand. According to the German newspaper Automobilwoche, Volkswagen is expected to cut jobs in response.
Volkswagen cutting jobs at Zwickau EV plant
Although Volkswagen has yet to comment on the possible job cuts, the company’s plans were leaked by Saxony Prime Minister Michael Kretschmer’s comments at an event (first reported by Bild).
Kretschmer said, “In the next few days, maybe even hours, we will hear unfortunate news. We were proud of what is happening in Saxony at Volkswagen with electromobility, what is going on.” Adding, “It’s not going to be that successful in the end. A whole bunch of colleagues will no longer be able to work there, at least temporarily.”
The report notes it could affect a few hundred (of the 11,000) employees at the end of October. However, this number is not confirmed.
Saxony’s Economic Minister Martin Sulig also expressed concerns: “It is a serious situation. We want to show the employees a positive perspective, but we cannot always discuss possible solutions publicly right away.”
The situation has worsened, with demand slipping and a gloomy outlook. Dealers have reported declining interest in Volkswagen Passenger Car’s three MEB electric models.
Earlier today, the European Union launched a probe against Chinese EVs as imports have surged in 2023.
The investigation comes as EV makers in China, including BYD, NIO, and XPeng, are rapidly expanding their presence in the region. EU Commission President Ursula von der Leyen said the competition is unfair due to Chinese EV makers benefitting from state subsidies.
Volkswagen cites slow demand amid EV production cuts at German plants
Amid several reports that Volkswagen is cutting EV production at two German plants, the automaker revealed the reason – slowing demand.
Volkswagen suspends EV production in Germany
Last week, a report from the German newspaper Automobilwoche claimed Volkswagen was pausing EV production at its Dresden facility in Germany.
Volkswagen’s Dresden facility has built over 150,000 VW Phaeton, e-Golf, ID.3, and Bentley Flying Spur models since beginning production in 2002. Last year, 6,500 ID.3 EVs were built at the location.
The automaker will temporarily suspend ID.3 production at the plant for two weeks during the Saxon autumn holidays, as first reported by Germany’s DPA news. Starting October 16, the electric car will be built again in regular single-shift operation.
Dresden’s roughly 300 employees will be reassigned to other areas, including “innovative manufacturing and testing.”
Meanwhile, at Volkswagen’s main BEV plant in Zwichau, one of the two production lines will shut down during the holidays, according to a spokesperson (via Automobilwoche).
The news comes after VW announced at a staff meeting earlier this month it would be cutting 269 temporary jobs at the site.
Although Volkswagen’s ID.3 and Cupra Born will be impacted by the halt, ID.4, ID.5, Audi Q4 e-tron, and Audi Q4 sportback e-tron models will continue regular production in three shifts.
Volkswagen is discussing with local labor reps how to proceed with EV production at the Zwickau plant.
The company did not specify how many units or employees would be affected by the changes.
Volkswagen is struggling to attract new EV orders amid higher inflation and weaning subsidies in Europe. Europe’s largest automaker also faces a growing threat from more advanced EV competitors like Tesla and BYD.
The core Volkswagen brand faces pressure as cheaper, more advanced EVs are taking market share at home and abroad.
In Volkswagen’s largest market by revenue (China), the automaker was surpassed by BYD as the best-selling car brand earlier this year.
In the wake of slowing demand, VW slashed ID.3 and ID.4 prices in the region. But how long can VW keep this up?
Volkswagen Group CEO Oliver Blume aims to boost VW brand returns to 6.5% over the next three years. Currently, it’s around 3.6%.
With EV makers like Tesla, BYD, and several other Chinese start-ups expanding rapidly, Volkswagen will need to act urgently to risk falling further behind.
Honda’s new electric sports car will debut next month, hinting at an NSX successor EV
At the Japan Mobility Show next month, Honda will showcase several new products and tech, including a new electric sports car that will headline the booth.
The new electric sports car will “enable the driver to experience the pure joy of driving,” according to Honda.
Although the automaker was light on the details behind the project, it claims the concept will represent “Honda’s continuous pursuit of the joy of driving” while embodying Honda’s universal sports mindset and distinctive characteristics.
Also ready to make an appearance at the booth is Honda’s SUSTAINA-C Concept and Pocket Concept, designed to use limited resources.
Both models are made of recycled and reused acrylic resin with the idea of “resource circulation” for environmental sustainability and future mobility freedom.
Other EV products set to make their world debut include the Honda CI-MEV. The two-seat, four-wheel mini EV uses Honda’s cooperative intelligence (CI) and automated driving for last-mile deliveries and areas with limited mobility options.
A prototype of Honda’s new commercial-use mini EV with a portable external power output device, Power Exporter e: 6000, will also be displayed.
Honda to unveil new electric sports car
Honda revealed plans to launch 30 new EV models globally by the end of the decade, including at least two electric sports cars.
One will be a specialty model, while the other will be a flagship. Speculation suggests one of the models will be an NSX, a two-seater sports coupe (An Acura model in North America), with the other being a GT.
Honda teased the upcoming electric sports cars under wraps, showing a low-profile vehicle with a similar body design to the NSX.
According to the British automotive magazine Car, Honda’s EV performance car will ride on the automaker e:n platform, featured in its e:Ny1 electric SUV.
The EV could also wear the Type R badge, as Honda’s technical consultant, Kotaro Yamamoto, said, “Type R stands for racing. It’s a pleasure transported. An electric car can deliver this, and a Type R is not obliged to use a combustion engine. Even in a fully electric society, there will still be Type Rs delivering ultimate driving pleasure.”
Other than that, Honda is keeping the details under wraps. We’ll learn more about the electric performance car next month.
The electric sports car will make its world debut at the Japan Mobility Show, running from October 28 to November 5, 2023. Media days will be October 25-26.
Is this the production Tesla Cybertruck?
New Tesla Cybertrucks, rumored to be “Master Candidates,” the final step before production, have been spotted coming out of Gigafactory Texas.
For the past month, Tesla has had full and at times, partial shutdowns, of production at Gigafactory Texas as it conducted factory upgrades.
Yesterday, a drone video shot by Joe Tegtmeyer confirmed that workers are now coming back to the factory.
The video showed new Model Y bodies coming out of the factory and new Cybertrucks.
There have been rumors that the shutdown at Gigafactory Texas might have been linked to the start of Cybertruck production.
Tegtmeyer, who often gets to talk to Giga Texas employees as he flyes drones there almost daily, claims that the new Cybertrucks spotted coming out of the factory are “Master Candidates,” the last step before production.
While it can’t be confirmed if they are master candidates or production versions, the two Cybertrucks spotted at the factory did look a lot more refined than the previously spotted prototypes:
The trims and fittings seem to blend better with the stainless steel body of the electric pickup truck.
While we can’t judge the vehicle’s fit and finish too closely because the footage is taken from a distance with a drone, the looks of those two Cybertrucks are encouraging.
Tesla is expected to officially start Cybertruck production any day now with deliveries to start at an event likely within the next month.
More Cybertrucks have been spotted parked at the homes of Tesla employees, which is a good sign that internal testing has expanded.
Sports11 months ago
‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
Environment4 months ago
Japan and South Korea have a lot at stake in a free and open South China Sea
Sports2 years ago
Team Europe easily wins 4th straight Laver Cup
Technology2 years ago
Game consoles were once banned in China. Now Chinese developers want a slice of the $49 billion pie
Sports6 months ago
MLB Rank 2023: Ranking baseball’s top 100 players
Environment7 months ago
Game-changing Lectric XPedition launched as affordable electric cargo bike
Politics2 years ago
Have the last few wobbly weeks seen a turning point for Johnson as PM?
Business12 months ago
Bank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway