Volkswagen: Terminates Three-Shift Production Agreement At Zwickau Plant

Volkswagen is currently negotiating a new production deal with workers at its all-electric plant in Zwickau, Germany, after terminating a long-standing three-shift agreement, the carmaker said on Wednesday.

“The aim is to reach a new agreement, jointly supported by the company and the employees, which takes into account the current market situation and ensures the economic viability of the site,” the company said.

The current agreement, which has been in place since 1991, will still run until the end of the year, Volkswagen said.

German news agency dpa first reported on the renegotiation.

Earlier this month, the carmaker said it was cutting back planned staffing and adjusting shift work at Zwickau due to muted demand for electric cars.

In 2022, the plant produced 218,000 vehicles, compared with capacity of around 360,000.

(Reporting by Christoph Steitz, Editing by Friederike Heine)