VW Plant in Zwickau — Kretschmer Promotes Plan B

In the struggle over the future of the VW plant in Zwickau, pressure is mounting on the union and the works council to make concessions. “It’s not enough to stand in front of a factory gate and demonstrate,” said Saxony’s Minister President Michael Kretschmer (CDU) during a meeting with representatives of the automotive industry in Zwickau. The key question, he said, is how the car factory can become more competitive. “We have to move beyond the current collective bargaining framework.” This includes more flexible working hours.

The future of the site beyond 2031 is uncertain. This is due to massive overcapacity at Volkswagen’s German locations. As a Plan B, Kretschmer proposed founding a new company for the car plant—Autounion Sachsen GmbH. In addition to Volkswagen itself, this would open the plant to other investors. However, to do so, it must become more competitive compared to other production sites, such as those in Eastern Europe, according to reports. The VW plant in Bratislava, Slovakia, is cited as an example.

Will additional investors be found for the Zwickau car factory?

Dirk Vogel from the automotive supplier network AMZ described it as a promising vision. However, additional investors would need to be found. The model could be of interest to other manufacturers seeking production capacity in Europe but unable to fully utilize an entire plant. The industry points, for example, to the semiconductor industry, where similar arrangements already exist. For instance, a new factory is being built in Dresden as a joint venture among several semiconductor manufacturers. 

In Zwickau, too, various companies could jointly utilize the VW plant in the future. However, it is said that Volkswagen will continue to be needed as a key investor for the time being. Industry representatives pointed out that production for various brands within the group is already taking place there—not only complete cars, but also body shells for Bentley and Lamborghini.

Meeting with employee representatives planned

Several industry representatives emphasized during the roundtable discussion with Kretschmer that concessions from the employee side are essential for lower production costs. IG Metall recently rejected longer working hours and lower wages. The union points to collective bargaining autonomy, in which politicians should not interfere. “A plan of this magnitude must not be developed without consulting the workforce’s representatives,” clarified Mario Albert, chairman of the works council at the VW plant in Zwickau. 

According to the State Chancellery, following the discussion with representatives of the automotive industry, Kretschmer plans to meet with the union and the works council in the near future to promote his proposal. He emphasized that it is important for employees to receive something in return for making concessions. To that end, the CDU politician cited a reasonable capacity utilization rate for the vehicle plant as well as a ten-year guarantee for the location.