VW's Zwickau Plant: Symbol of EV Transition Now Under Threat

The Volkswagen plant in Zwickau, once a flagship of the company's electric vehicle transition, is now facing potential closure. Six years ago, VW invested approximately 1.2 billion euros to fully convert the Zwickau site to battery-electric production, making it the first large VW plant to do so. The conversion was intended to demonstrate that technological change need not lead to the decline of an industrial location. However, as of late June, VW's management has been considering the closure of German sites for the 2030s, with Zwickau, Hannover, Emden, and Audi Neckarsulm named as potential candidates. The scenarios reportedly include the elimination of up to 100,000 jobs worldwide. The decision is not primarily about technology but about the allocation of scarce models in the future. Despite meeting savings targets, the plant remains under pressure. The article, published in the German newspaper 'der Freitag', discusses the broader issue of deindustrialization and whether the problem is technological or one of power and resource allocation.