Volkswagen ends Zwickau plant's three-shift production deal

Volkswagen is in talks with workers at its all-electric plant in Zwickau, Germany to negotiate a new production deal. The carmaker terminated a long-standing three-shift agreement and is now aiming to reach a new agreement that considers the current market situation and ensures the economic viability of the site. The current agreement, which has been in place since 1991, will continue until the end of the year. The renegotiation was first reported by German news agency dpa.

Due to muted demand for electric cars, Volkswagen recently announced that it would be cutting back planned staffing and adjusting shift work at the Zwickau plant. In 2022, the plant produced 218,000 vehicles, which is significantly lower than its capacity of around 360,000.