The German sports car manufacturer Porsche plans to close a significant portion of its battery production subsidiary Cellforce, reported the German news agency dpa on Wednesday.
According to information obtained by dpa, nearly 200 jobs will be eliminated. Unlike Porsche employees, workers at Cellforce are not guaranteed employment under the agreement made with the employer by the union.
The employment agency in the northeastern city of Reutlingen, near Cellforce’s headquarters, has been informed about the mass layoffs, German media report.
Porsche’s CEO Oliver Blume has informed the government of the federal state of Baden-Württemberg about the planned closure of part of the business, sources familiar with the situation told dpa.
The factory that the German company plans to close received state subsidies amounting to 60 million euros.
A spokesperson for Porsche declined to comment on the situation, while a spokesperson for the state government stated that they could not comment on internal discussions.
Porsche announced high-performance battery production in mid-2021. However, in the face of fierce competition in the electric vehicle market, the management of the luxury car manufacturer reported in April that it did not wish to continue operating independently in the battery production subsidiary, announcing that it was seeking investors.
According to the weekly Der Spiegel, the closure of Cellforce is a drastic move for Volkswagen’s subsidiary, which will result in a value reduction of approximately 295 million euros.
All Porsche employees have been invited to a general meeting on Monday, where they will hear from the development CEO Michael Steiner, union sources stated.
