FRANKFURT, Sept 26 (Reuters) – Volkswagen (VOWG_p.DE) will suspend production of ID.3 and Cupra Born electric cars at its Zwickau and Dresden plants in Germany in the first two weeks of October due to weaker demand, a spokesperson for the carmaker said on Tuesday.

Due to the current market situation, vehicle production will be reduced during the autumn holidays in Saxony from Oct. 2 to Oct. 13 at Volkswagen’s Zwickau plant, the spokesperson said. Germany’s dpa news agency first reported the news.

Production of the ID.3 model in Dresden will be suspended from Oct. 2 and resume from Oct. 16 onwards.

Volkswagen declined to comment on the number of employees affected. The carmaker said earlier this month that it would not extend the fixed-term contracts of 269 employees at its all-electric Zwickau plant.

The German carmaker is facing rising competition from Tesla and a growing array of Chinese automakers, as well as dampened demand in the European EV market due to high inflation and cuts to subsidies.

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