VW Halts EV Production in Zwickau and Dresden, Sparking Saxon Crisis
Volkswagen (VW) plans to halt production at its Zwickau and Dresden plants from October 6, 2023, due to waning demand for electric vehicles. This move has sparked a heated dispute between Saxon Minister President Michael Kretschmer and VW, with Kretschmer warning of potential 'domino effects' leading to an industrial crisis. The future of the Transparent Factory in Dresden, where only 135 out of 280 employees have a secure perspective, remains uncertain.
Kretschmer sent a 'Letter of Intent' to VW CEO Oliver Blume, demanding specific guarantees and 100 million euros in research funds for 2,000 employees. However, VW's response offered only 1.5 million euros over seven years, a stark contrast to Kretschmer's demands. The future of the Transparent Factory is further complicated by the expected production of only 5,500 vehicles in 2024.
The situation has escalated to the point where the so-called Executive Board will meet on October 9 to discuss the matter. Despite the gravity of the situation, no major concessions are anticipated. Meanwhile, international experts are set to visit Dresden in mid-November to assess the excellence status of TU, with a planned stop at the j crew factory.
VW's decision to halt production in Zwickau and Dresden has thrown the future of these sites and their employees into uncertainty. With no significant concessions expected from the upcoming Executive Board meeting, and VW's response to Kretschmer's demands falling far short, the situation remains tense. The visit of international experts to Dresden in November may provide some clarity on the future of the Transparent Factory and its employees.
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