DETROIT, Michigan: Volkswagen's decision to scale back production at its Chattanooga, Tennessee plant has sparked backlash from the United Auto Workers (UAW), which filed unfair labor practice charges against the automaker.

The move comes as VW reduces operations amid weakening electric vehicle demand.

"The UAW has notified the Trump Administration of Volkswagen's unacceptable, anti-union, anti-worker, and anti-American conduct," UAW President Shawn Fain said in a statement.

The Tennessee facility, which produces the ID.4 electric SUV, will transition to a two-shift production model. A Volkswagen spokesperson said the company is offering a "voluntary attrition program" that includes severance packages, retirement options, and benefits.

"We remain committed to our team members, our customers, and our presence in Chattanooga. This change supports that commitment," the company said.

The Chattanooga plant became a milestone for labor unions last year when workers voted to join the UAW. This made it the first foreign-owned auto plant in the South to unionize via election since the 1940s. Negotiations for the factory's first labor contract have been ongoing since the election.

VW's job cuts in Tennessee are part of a broader trend. The German automaker has been reducing its global workforce in response to slowing demand and rising competition from Chinese carmakers. Last year, the company announced plans to cut over 35,000 jobs in Europe following difficult negotiations with unions.

In the U.S., Volkswagen also faces uncertainty from President Donald Trump's proposed 25 percent tariffs on vehicles imported from Mexico and Canada. Trump has temporarily exempted vehicles that comply with United States-Mexico-Canada Agreement (USMCA) rules of origin, but that exemption is set to expire in early April.

Volkswagen said last week that its North American vehicles meet USMCA requirements, but among German automakers, it remains the most exposed to potential tariff risks. With Audi and Porsche lacking U.S. production facilities,

VW's passenger car sales in America rely heavily on imports from Mexico. Additionally, its battery cell plant, which was under construction in Canada, was intended to supply the U.S. market, leaving plans uncertain.