Volkswagen subsidiary PowerCo will probably build only one of two planned production lines at its plant in Salzgitter, Germany. According to the works council, the carmakerʼs decision is based on the declining demand for electric vehicles and their batteries. Originally, two production lines with an annual capacity of 20 gigawatt-hours each were to be built at the plant.
Capacity to be “flexible and driven by demand”
However, the construction of the second line has apparently been postponed indefinitely. A spokesperson of the compamny claims that the expansion of production capacity will be “flexible and driven by demand”. PowerCo remains committed to commissioning the plant in 2025. The decision to slow down the plantʼs ramp-up has caused concern among workers at the site. They fear that the second production line could be scrapped as part of a further cost-cutting program by the company. Volkswagen had announced that significant cuts would be necessary over the twelve to 24 months in order to get the corporation back on track.
