- Volkswagen and the IG Metall union have reached an agreement that is a huge blow to workers.
- More than 35,000 jobs will be cut across Germany as Volkswagen trims production capacity by 734,000 units.
- Production will end at Volkswagen’s Transparent Factory next year, while Golf production is moving to Mexico.
After strikes and heated exchanges, Volkswagen has come to an agreement with the IG Metall union. However, there’s not much to celebrate as thousands of workers will be losing their jobs.
The agreement is known as “Zukunft [Future] Volkswagen” and it calls for a “socially responsible reduction of the workforce.” More than 35,000 jobs will be cut across Germany by 2030.
More: 100,000 Volkswagen Workers At 9 Plants Go On Strike
While the cuts are deep, they’ll save Volkswagen €1.5 ($1.5) billion annually in labor costs. The company’s German production capacity will also be reduced by 734,000 units to become better aligned with demand. Together, Volkswagen is expecting to save more than €15 ($15.6) billion per year in the medium term.
Volkswagen said the agreement “combines job security, financial stability, and a leading technological position in the field of sustainable mobility.” They also noted the savings help to “lay the foundation for important investments in future products through to 2030.”
In a statement, Volkswagen Group CEO Oliver Blume said “The agreement is an important signal for the future viability of the Volkswagen brand, Volkswagen Commercial Vehicles and the component plants. With the package of measures that has been agreed, the company has set a decisive course for its future in terms of costs, capacities and structures. We are now back in a position to successfully shape our own destiny.”
In the future, Volkswagen’s Wolfsburg plant will build the ID.3 and Cupra Born. Golf and Golf Estate production will shift to Mexico in 2027, but an electric Golf and an SSP-based EV will be made in Germany towards the end of the decade.
The Emden plant will continue to build the ID.4 and ID.7, while the Osnabrück factory will cease production of the T-Roc Cabrio in mid-2027. Its future looks questionable, but Volkswagen said “Options for a different use of the site are currently being explored.”
Zwickau will build the Audi Q4 e-tron and Q4 e-tron Sportback, while Volkswagen’s fancy Dresden plant – known as the Transparent Factory – will cease production late next year. It currently builds the ID.3 and Volkswagen said they’re exploring options for the plant including a “third-party scheme.”
Over in Hanover, the ID.Buzz and Multivan will remain in production. Furthermore, Volkswagen Group Components sites in Kassel, Braunschweig, Salzgitter, Hannover, Wolfsburg and Chemnitz will be retained. However, these locations will embrace “new working time models.”
