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VW Halts Saxony EV Production for a Week as Clash With State Leaders Deepens

The company cites weak EV demand despite pressure for guarantees and funding.

Overview

  • Volkswagen will pause production for one week at its Zwickau and Dresden electric-car plants starting Monday because demand has weakened.
  • The Chemnitz engine factory will continue operating, and Wolfsburg will add shifts to build combustion models.
  • Saxony’s premier Michael Kretschmer demanded binding guarantees including 250,000 vehicles annually in Zwickau, protection of 2,000 jobs in Chemnitz, a recycling center with about 200 jobs, and €100 million for TU Dresden.
  • VW leadership dismissed new commitments as unnecessary, saying production volumes, site planning and employment levels were already agreed with employee representatives.
  • VW offered TU Dresden €1.5 million over seven years for an innovation project and sees roles for 135 former Dresden plant staff, leaving roughly 70 without a solution.