Future of the VW Zwickau plant: Opportunities and challenges in the electric car boom!

Future of the VW Zwickau plant: Opportunities and challenges in the electric car boom!

In Zwickau, a city with deep roots in automobile production, the future of the VW plant hangs in the balance. On November 13, 2025, the mood is mixed. Prime Minister Michael Kretschmer is optimistic about the future and emphasizes the importance of the location: “We must demand the support of trade unions and federal politicians.” VW CEO Oliver Blume also gives the all-clear: “We take care of Zwickau and the employees can count on us.” There are currently around 9,200 employees working here in two shifts, and all hands are needed to boost the production of electric vehicles.

Zwickau is taking a pioneering role in the switch to electric cars. Only electric vehicles from the VW, Audi and Cupra brands roll off the production line here. However, this change is not a sure-fire success, because in order to fully utilize the capacities, the market for electric cars must grow. “We have to pull together to overcome the challenges,” explains Kretschmer. Current uncertainties caused by chip shortages are putting a strain on the factory, but production for the next week is at least secured.

New opportunities through transformation

However, the challenges for VW are complex. In February 2025 it was announced that crucial production orders would be relocated from Zwickau to Lower Saxony, raising questions about the further development of the location. But the “Initiative Transformation Automotive Region Southwest Saxony” (Itas) also sees opportunities in this situation. Particularly in the planned recycling area at the Mosel plant, promising business areas could emerge. Work is also underway on the Zerva project, which is developing a vehicle made largely from recycled materials.

If future projects get off the ground, this could open up new opportunities for the region. Consideration is being given to offering further training for supplier companies. “The transformation of the automotive industry is seen as both a challenge and an opportunity,” says an Itas spokesman, summing up the situation. The use of renewable materials and the creation of a circular system could not only secure jobs in the long term, but also protect the environment.

Job cuts and future prospects

However, the situation is tense. Volkswagen plans to close various production facilities and reduce production in Zwickau. Car production in Dresden is also stopped. The joy of the switch to electric cars is clouded by the high personnel costs and the difficulties of keeping up with the competition from China. “We can’t afford an electric car for less than 20,000 euros,” is what employees are discussing. What happens next remains to be seen. A plan for the “Future Foundation for Automobile Suppliers in Saxony” could help support small and medium-sized suppliers in the medium term.

The current situation requires clever minds and good hands. It remains to be seen whether these challenges can be overcome in Zwickau. Fortunately, the first steps in the right direction have already been taken, and as we all know, hope dies last.