Volkswagen has just announced its plan to drastically reduce costs and continue to exist as a car manufacturer. The German group will cut its workforce, since more than 35,000 jobs will be eliminated in Germany by 2030. Which represents around 1/3 of employees.
We know that Volkswagen is going through a major crisis in its existence. We also know that Volkswagen risks disappearing (and therefore going bankrupt) if nothing is done. It is for this reason that the German group has been seeking to make savings for many months.
Many decisions had already been announced, but the press release published by Volkswagen finally gives the precise details. After three months of negotiations with the unions and two major strikes, here are the concessions that were made by both parties.
For the moment, no factory closures have been announced (except that of Audi in Belgium), but the German group announces the elimination, by 2030, of 35,000 jobs in Germany. Which represents 29% of the total workforce. These departures will not take the form of layoffs, but of unreplaced retirements and voluntary departures.
The free exceptional bank card*
Finally discover a prestigious bank card: the World Elite Mastercard from Fortuneo is designed to offer you services adapted to your lifestyle and all your desires
According to the unions, Volkswagen wanted to initially cut 55,000 jobs as specified Boursorama. To reduce this figure to 35,000, the unions were forced to accept a drastic reduction in production in Germany, since Volkswagen will produce 734,000 fewer cars per year there with this new plan.
The Golf will no longer be produced in Germany
Some cars will be produced abroad (such as the iconic Golf which will go to Mexico in 2027) or others will simply be produced in smaller quantities. The historic and famous glass factory line in Dresden will no longer produce vehicles from 2025.
Let us point out, however, that the future electric Golf, expected by the end of the decade, on the SSP platform, will be produced in Wolfsburg, Germany.
No factory closures?
Good news: economic layoffs have been excluded from the negotiating table, and the company promises that there will be no factory closures even though the group has ten in Germany.
But be careful all the same, because according to Handelsblatt, the Osnabrück factory, which will no longer produce cars from mid-2027, could be resold in the long term. Which then amounts to a factory closure.
Salaries will also be frozen for 2025 and 2026 while the payment of certain bonuses will be spread over several years.
4 billion savings per year
This huge agreement should result in significantly different financial results, in an attempt to better fight global competition, whether European, American but also Chinese.
The group thus announces 4 billion euros in savings per year in the medium term, including 1.5 billion due to the reduction in labor costs, particularly linked to departures and salaries.
Want to find the best Frandroid articles on Google News? You can follow Frandroid on Google News in one click.
