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Volkswagen’s Zwickau Plant Prepares for ‘Third Reinvention’ as Circular-Economy Hub

Management has filed funding applications to add disassembly and diagnostics in response to softer EV demand.

Overview

  • Plans call for building a European center for vehicle disassembly, diagnostics and processing at Zwickau, with preparatory work under way.
  • The factory now operates on two shifts after cutbacks, and some models are slated to be reassigned to other Volkswagen sites pending supervisory board decisions.
  • Headcount has declined to roughly 8,500 from about 9,200 at the start of the year, while output is expected to reach around 212,000 vehicles in 2025, about 4% above 2024.
  • Experts cite Toyota’s Burnaston operation, which handles about 10,000 vehicles annually, as a relevant benchmark for Zwickau’s proposed circular-economy role.
  • Works council leaders support expanding into circular-economy activities but stress that new-vehicle assembly must continue to safeguard jobs and local suppliers.