VW crisis: Possible plant closures in Salzgitter, Chemnitz, and Zwickau jeopardize thousands of jobs

Chemnitz: Manufacturing of Internal Combustion Engines

The plant in Chemnitz employs approximately 1,800 staff members and manufactures TSI engines and engine components. As the production of internal combustion engines is expected to decline significantly in the long term due to political and societal developments, the plant is at great risk. In the event of a possible closure, engine components could be sourced from other locations. This raises questions about the future of facilities that are still heavily specialized in combustion engine technologies.

Zwickau: E-Car Production in Competition

The situation in Zwickau, the largest e-car plant in Europe, is particularly urgent. Around 9,400 people work here, but this location could also be affected by the plans. Zwickau is in direct competition with the VW plant in Emden, which was recently converted for 1.2 billion euros to e-vehicle production. Emden is considered a strategically important location for the export of electric models, further complicating Zwickau’s future. Despite investments in e-mobility, the closure of the Zwickau plant cannot be ruled out if cost-saving measures are further intensified.

Reactions from Politics

Lower Saxony’s Minister President Stephan Weil, who also sits on VW’s supervisory board, expressed criticism about the potential closures and urged the company to examine alternatives. “We expect that the question of closing locations simply does not arise through the successful use of alternatives,” said Weil. He pointed out that before such a step, all other measures to reduce costs must be considered to secure Volkswagen’s long-term competitiveness.

Future of Employees

The potential closures affect not only the direct employees of the plants. Including the suppliers and other indirect jobs, up to 120,000 people could be impacted by the measures. For the workforce, this means considerable uncertainty about the future of their jobs. Therefore, the works council and unions are demanding clear perspectives and a socially responsible solution in case closures occur.

Background: E-Mobility and Transformation

The cost-saving measures at VW are related to the company’s transition to e-mobility and the associated challenges. The company is under pressure to reduce the high costs of transformation. At the same time, the requirements for sustainable production and the development of new, competitive models are increasing. Competition in the e-mobility sector is intensifying, and Volkswagen must find new ways to remain profitable in the long term in view of weak sales figures and high investments in its e-strategy.

Whether and to what extent plants will actually be closed is currently unclear. However, what is clear is that Volkswagen faces significant challenges in balancing cost reduction and the transition to sustainable mobility.

Translated automatically from German.