The Volkswagen Plant in Chattanooga has announced that they are cutting production at the Chattanooga plant and asking for voluntarily layoffs. They said in a full statement: “Volkswagen Group of America’s (VWGoA) Chattanooga plant will return to a primarily two-shift production model beginning on March 31.

Volkswagen cuts a shift at its Tennessee plant amid EV demand struggles, sparking a UAW unfair practices claim.

Last year, the majority of employees at VW’s factory in Chattanooga, Tennessee, voted to join the United Auto Workers (UAW) union, but as the UAW negotiates its first contract with the automaker, it accused VW of unfair labor practices.

The automaker cited declining demand for electric vehicles as the reason for reducing production to two shifts and offering voluntary severance packages.

The United Auto Workers union said on Thursday it filed unfair labor practice charges against Volkswagen , as the automaker cut jobs at a factory in Tennessee where the union is negotiating its first contract after winning an election there last year.

VW is cutting back to two shifts producing the electric VW ID Buzz, which is being built at the first foreign-owned Southern auto plant to unionize.