These are the main points of a deal struck on Friday between Volkswagen and unions on the carmaker’s German sites and jobs. The agreement followed more than 70 hours of talks and averted the spectre of strikes at Europe’s largest carmaker.
- Volkswagen will reduce VW AG’s staff in Germany by more than 35,000 jobs, or around a quarter of the division’s workforce, by 2030 in a socially responsible way.
- Alongside the cuts, there will be a new job protection scheme that runs until 2030. Capacity at VW AG’s German plants will be reduced by 734,000 units, which corresponds to roughly a quarter of VW AG’s entire German capacity. Management had warned it was facing a shortfall in demand of about 500,000 cars, equivalent to about two plants.
- The measures bring down costs by €15bn (R274,358,458,500) a year over the medium term, with labour cost cuts and capacity cuts contributing around €4bn (R73,151,551,600) annually together.
- None of VW AG’s plants will be shut down.
- The future of Volkswagen AG’s Osnabrueck factory beyond mid-2027 is uncertain, with Volkswagen exploring alternative scenarios for the site’s use. Lower Saxony state premier Stephan Weil, who also sits on Volkswagen’s supervisory board, said future options for Osnabrueck include a search for an investor.
- Volkswagen AG’s Dresden plant will also stop vehicle production at the end of 2025, with VW examining options for the site, including “participating in a third-party concept”.
- Production at VW’s Wolfsburg plant, its biggest, will be cut to two assembly lines from four while production of the Golf and the Golf Variant will be shifted to VW’s plant in Puebla, Mexico from 2027.
- VW AG’s staff will not get raises under the collective wage agreement over the next four years, while some bonuses will be scrapped or reduced.