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Volkswagen has already sounded the alarm: they will no longer accept electric models from the Germans. The disappointing sales have now led to layoffs at the Zwickau factories, and there is a good chance that this will not stop there.
This is reported by the news agency Bloomberg. The Wolfsburgers are not renewing the contracts of 269 temporary workers at the Volkswagen factory in Zwickau. On top of that, another 2,000 jobs would be at risk. According to Volkswagen, the layoffs are related to ‘current market conditions’.
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Loss of subsidies is to blame
The interest from companies in electric Volkswagens is currently disappointing. Business orders have fallen by 70 percent. This is because the German government recently ended a subsidy scheme for EVs.
According to Volkswagen, high inflation also plays a role in the disappointing sales. Purchasing power is declining and private car buyers are therefore less likely to choose a more expensive electric car over an affordable petrol or diesel car. And the uncertain electricity prices do not make the calculation any more attractive.
Volkswagen remains confident
According to the German brand, the setbacks do not mean that they no longer support the electric transition. Volkswagen emphasizes that it continues to invest in the Zwickau factory. Currently, approximately 10,700 employees at the factory are exclusively involved in building electric Volkswagens. Only time will tell whether that number will continue to decline significantly.
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