Overview

• Volkswagen's Zwickau factory, the company's first all-electric vehicle hub, has produced its one-millionth EV since its transformation in 2019.
• The plant, which narrowly avoided closure earlier this year, secured a six-year operational guarantee following intense labor negotiations.
• VW plans to reduce Zwickau's production capacity, shifting several EV models to other plants in Wolfsburg and Emden by 2027.
• The company is exploring the development of a circular-economy hub at Zwickau, focusing on battery recycling as a new strategic business direction.
• Germany's auto industry faces a broader crisis, with VW and Mercedes reporting over 40% profit declines in Q1 2025, raising concerns over job security for millions.