Volkswagen has recently resumed full-scale electric vehicle (EV) production in its Zwickau and Dresden plants after a brief slowdown in the first two weeks of October.
The Zwickau plant, known for producing VW’s ID series electric cars, and the Dresden facility have returned to full-shift operation, signaling a commitment to EV manufacturing.
Despite this move, there is still a looming threat to jobs. The automaker may have to make tough decisions in the long term.
According to a company spokesperson, up to 2,200 jobs in Zwickau could be at risk if demand for EVs does not pick up.
In early October, Volkswagen temporarily halted one production line in Zwickau and suspended production of the ID.3 in Dresden.
This decision came after Volkswagen terminated its long-standing three-shift agreement with Zwickau workers, already having reduced hundreds of jobs in the past.
Zwickau, which currently employs over 10,000 people, might be facing more job cuts in the near future.
Volkswagen is actively working to improve its EV production, although the electric car plant in Zwickau is not operating at its full capacity.
The facility has the potential to produce up to 300,000 EVs annually but is on track to produce around 218,000 vehicles this year.
The company anticipates a production volume of approximately 200,000 vehicles in the coming years if market conditions do not change significantly.
While Volkswagen did observe a slight increase in demand for EVs, the overall market has been challenged by a drop in demand following the reform of environmental incentives, which reduced purchase premiums starting in 2023.
In June, Volkswagen also scaled back production of electric cars at its Emden plant due to weakening sales, with demand falling nearly 30 percent below initial production projections.
Additionally, Volkswagen recently confirmed that its upcoming flagship model, Trinity, will be produced in Zwickau instead of Wolfsburg.
Meanwhile, Wolfsburg will be the future home of an all-electric SUV, expected to debut in late 2026.
Read more: What countries led electric vehicle sales in September?
