Major car maker cuts 200 jobs at EV factory as sales plummet with drivers ‘put off by high energy costs’
VOLKSWAGEN AG is expected to cut 200 jobs at its electric vehicle plant as sales of battery-powered cars plummet.
The German car giant is expected to lay off 269 employees at its Zwickau plant when their 12-month contracts expire.
2
2
There is reportedly uncertainty about the future of 2,000 workers.
Bloomberg reports that corporate orders for electric vehicles (EVs) have fallen following the expiration of a government subsidy.
Sales of VW electric vehicles have declined in recent years due to Tesla Inc.’s expansion. Sluggish economic growth, higher energy bills and price inflation have combined to dampen demand for VW’s range of electric vehicles.
The German manufacturer has invested 1.2 billion euros in Zwickau in recent years and hired thousands of employees.
VW’s share price has fallen 8% this year. The company is now trying to break into the lucrative but fiercely competitive Chinese electric vehicle market.
A VW spokesman said: “Volkswagen remains 100% convinced of the path to electromobility.”
“The Zwickau location plays a central role in this.”