Shulou(Shulou.com)11/24 Report--

CTOnews.com, September 14 (Xinhua)-- Volkswagen plans to cut temporary workers at its main German electric vehicle plant because of a decline in orders for electric vehicles in Europe, according to sources familiar with the matter.

The company plans to let nearly 300 employees at the Zwickau plant leave when their contracts expire in October, sources said. The fate of about 2000 temporary workers remains uncertain. The plant currently employs about 10700 people, and people familiar with the matter declined to be named because a final decision has not yet been made.

Representatives of the union IG Metall have written a letter to Volkswagen management asking about Volkswagen's response to demand for electric cars and whether the plant will maintain three shifts.

Volkswagen announced in 2018 that it would invest 1.2 billion euros (CTOnews.com Note: about 9.36 billion yuan) to transform the Zwickau plant, which is home to six electric models from three brands, into a production base for electric cars and to keep employees stable by increasing production, although electric cars require less labor than diesel locomotives. But Volkswagen now faces competition from Tesla and a growing number of Chinese carmakers, as well as falling demand for electric cars in Europe due to high inflation and subsidy cuts.

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