Tesla closes assembly in Tilburg, 96 jobs at risk

September 8, 2019 by No Comments

The factory of the American car manufacturer in Tilburg will soon stop assembling the Model S and Model X. These vehicles are assembled in Tilburg, because fewer import duties are levied on the import of individual car parts than on a complete car.

Due to adjustments to the Model S and X – mainly the interior – it is no longer profitable for Tesla to combine separate parts into a new car in the Netherlands. Tesla announced this in a letter to employees in Tilburg on Thursday.

Up to 96 people are at risk of losing their jobs as a result. Tesla offers its staff a social plan that, according to the FNV union, is “just over the minimum”. The union does not agree with the offer, a spokesperson said.

The assembly plant was personally opened by Tesla CEO Elon Musk in September 2015, at a time when the diesel scandal had just erupted and the advance of the electric car had yet to pick up steam.

The Model S and X became especially popular with business drivers. In 2018 thousands were sold per year, now less than 300 per year. The cause: fewer tax breaks for electric cars

Tesla experienced its first profitable year last year thanks to good sales of the Tesla Model 3. In the Netherlands, the sales figures of the Model 3 have plummeted since the addition rates on electric cars have been adjusted.

In December 2020, 3,938 Model 3s were sold, in January only 14. Sales of electric cars from other brands have also fallen sharply.

Tesla Tilburg employs more than 500 people who carry out repair work or work in the parts warehouse. The car manufacturer is looking for options to offer employees in the assembly hall other work. Activities may be transferred to Berlin, where Telsa will make batteries and the new Model Y will go into production.