![Volkswagen-ID.3-production](https://electrek.co/wp-content/uploads/sites/3/2023/09/Volkswagen-ID.3-production.jpeg?quality=82&strip=all&w=1400)
The destiny of Volkswagen’s plant in Dresden, Germany, is up within the air after a brand new report claims the automaker plans to halt manufacturing on the facility. Volkswagen’s Dresden plant constructed 1000’s of ID.3 electrical fashions final 12 months, using round 300 full-time staff.
Volkswagen mentioned to cease ID.3 manufacturing in Dresden
Based on the report from the German newspaper Automobiliwoche, the placement will seemingly be retained in some capability, and the employees might be given different assignments.
Starting manufacturing in 2002, VW’s Dresden manufacturing unit has constructed over 150,000 Phaeton, Bentley Flying Spur, VW e-Golf, and ID.3 fashions.
It was initially opened to showcase new fashions beneath then-CEO Ferdinand Piech. Final 12 months, Volkswagen produced 6,500 ID.3 electrical fashions on the location.
Dresden’s roughly 300 or so workers might be reassigned to areas of “modern manufacturing and testing.” Nonetheless, the destiny of the two,000 extra non permanent employees continues to be up within the air.
The transfer is probably going a part of a broader technique to chop prices and higher place the corporate to compete sooner or later. Based on sources talking with Bloomberg, the ability’s annual working prices are between €60 million ($64M) and €70 million ($74.6M).
![Volkswagen-ID.3-production](https://electrek.co/wp-content/uploads/sites/3/2023/09/Volkswagen-ID.3-production-1.jpeg?quality=82&strip=all&w=1024)
By ending ID.3 manufacturing on the plant, Volkswagen might save round €20 million ($21.3M).
Final week, Volkswagen introduced at a employees assembly that it could be reducing 269 temp jobs at its Zwickau plant, the place EVs together with the ID.3, ID.4 SUV, ID.5, Audi This fall e-tron, and Cupra Born are manufactured.
A scarcity of orders, increased inflation, and smaller subsidies are threatening demand for Volkswagen electrical automobiles, based on the report.
Electrek’s Take
Volkswagen is urgently seeking to improve profitability, and Volkswagen Group CEO Oliver Blume needs to proper the ship.
The core Volkswagen model is seeing essentially the most stress with little earnings, pointless complexity, and extra plant capability. Blume goals to spice up VW model returns to six.5% by 2026, or round €10 billion ($10.7B) in earnings. Proper now it’s round 3.6%.
With Tesla, BYD, and different Chinese language EVs quickly increasing within the area, VW is responding because it seems to compete with extra worthwhile automakers.
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