Volkswagen Group is facing a crisis unprecedented. The German manufacturer that brings together brands such as Audi, Skoda or Cupra; In addition to Volkswagen itself, it faced the closure of facilities in its native country and mass layoffs. They have reached an agreement with the IG Metall union after 70 hours of negotiations and they will finally keep their factories. Of course, even if there are no closures, a more than considerable reduction in staff will continue…
Although they have described the movement as “responsible”, In 2030, 35,000 jobs will be eliminated in Germany. It is a high figure that will help them save 1.5 billion euros annually, one of the biggest cuts in recent times. They are spared immediate layoffs and salary cuts, while factories will continue with reduced production. HE will shorten by 734,000 units to adjust to current demand and to seek long-term viability.
After five rounds of negotiation and two strikes at German facilities, the Volkswagen Group has been able to reach a critical agreement, but will allow you to look to the future. The ten factories are maintained, while job security arrangements are restored until 2030, but some bonuses are also being waived, the number of apprentices reduced and capacity is also cut at five of the plants. All this with a view to save 15 billion euros which is the figure the manufacturer is looking for.
Although three factories are not closed as planned, the adjustments mean that we will see major changes. For example, production of the Volkswagen Golf will move from the Wolfsburg factory to Mexico from 2027. It is also true that there will be an electric Golf with a Rivian platform that will arrive in Germany at the end of the decade. On the other hand, production of the Volkswagen ID.3, ID.4 and Cupra Born will move from the Zwickau plant to those in Wolfsburg and Emden. The Audi Q4 E-tron will continue to be made in Zwickau.
The one that comes out the worst is the Dresden plantwhich will run out of car production in 2025 in search of alternatives, but without closure or layoffs. The same happens with the Osnabrück facilities, which will stop producing the T-Roc Cabrio in mid-2027. commercial vehicles it will remain in Hannover with the production of the Multivan and ID.Buzz; as will the component plants in six locations, which will continue with new work schedule models.
