ZWICKAU (dpa-AFX) - Despite overcapacity and workforce reductions, Saxony's Minister President Michael Kretschmer remains optimistic about the future of Volkswagen's Zwickau site. "I am very confident that Zwickau has a perspective," the CDU politician told ZDF. At the same time, he called on unions and federal policymakers to help secure the location. In an interview with the weekly newspaper "Die Zeit," VW Group CEO Oliver Blume stated: "We're taking care of Zwickau."

Zwickau has been a pioneer within the VW Group for the transition to electric vehicles. For several years now, only electric cars for the VW, Audi, and Cupra brands have been produced there. However, demand has not developed as hoped, and competition--especially from Chinese manufacturers--is fierce. As a result, Zwickau, with its approximately 9,200 employees, has shifted to a two-shift operation. In the foreseeable future, some models will also be transferred to other VW sites.

VW is by far the market leader in electric mobility in Europe, Blume emphasized in his "Zeit" interview. "The pioneering work of the team in Zwickau has played a major role in this." However, the market needs to grow for the company to fully utilize its capacities. In the medium term, pure electric vehicles will become much more attractive to customers, partly because they will be cheaper than combustion-engine or hybrid vehicles.

Auerswald: Circular Economy Is a Key Future Topic

In addition to Zwickau, Volkswagen operates other sites in Saxony, including Chemnitz and Dresden. VW Saxony chief Danny Auerswald stressed on ZDF's morning show that, despite the upheaval in the automotive industry, Volkswagen has secured jobs until 2030 and no sites will be closed. Furthermore, Zwickau is exploring a new business area centered on the circular economy. This involves dismantling used vehicles to recover parts and raw materials. "The circular economy is a central future topic for us."

However, uncertainty remains due to ongoing chip shortages. For the upcoming week, Volkswagen's production is secured for now. What happens after that is still unclear, the company in Wolfsburg reported. "Given the dynamic situation, short-term impacts on the Volkswagen Group's production network cannot be fundamentally ruled out," a spokesperson said.

Left Party Calls for Foundation to Support Suppliers

The looming chip crisis and its consequences for the automotive sector, which employs around 100,000 people in Saxony, were also discussed in the state parliament on Thursday. Economics Minister Dirk Panter (SPD) described it as an alarming signal of how dependent Europe still is on key future technologies. Overall, the German auto industry needs to become more competitive again. "At the same time, we must ensure that we reduce our dependencies in supply chains." In this, Saxony--as a key microelectronics hub--can be a reliable partner.

The crisis is the result of failed industrial policy, criticized Stefan Hartmann, economic policy spokesperson for the Left Party. "Most Saxon automotive suppliers are companies with around 50 employees. They lack both the equity and access to external capital to make the transition to future-proof business areas on their own." He called for a "Future Foundation for Automotive Suppliers in Saxony," to be financed by corporations such as VW and BMW. The foundation's mission should be to support small and medium-sized suppliers.