ZWICKAU (dpa-AFX) - Further cuts are threatening at the Volkswagen plant in Zwickau. According to information from the Deutsche Presse-Agentur, management has terminated the company agreement on three-shift operation dating from 1991. It will thus expire at the end of the year.

"The aim is to reach a new company agreement, jointly supported by the company and the employees, which takes into account the current market situation and ensures the profitability of the site," a company spokesman said on Wednesday in response to a query. Accordingly, production will no longer be in three shifts at the Wolfsburg and Emden sites either.

Just a day earlier, it had become known that VW would cut production at its Zwickau e-car factory for two weeks at the beginning of October due to weakening demand. One production line is to come to a complete standstill. Management plans to hold talks with the works council on how to proceed from Oct. 16.

According to the company, the termination of the works agreement is a "necessary formal step" in order to negotiate a new, sustainable works agreement. Talks on this would begin this week. The Zwickau plant is regarded as the Group's pioneer in electromobility. Around 10,700 people work there. They produce electric models of the Volkswagen, Audi and Cupra brands./hum/DP/zb