Volkswagen Announces 35,000 Job Cuts, Production Moves to Mexico

After intense strikes, Volkswagen has finally reached an agreement with the IG Metall union. However, there is not much to celebrate as thousands of workers will lose their jobs. This agreement, known as the 'Future Agreement', aims to 'reduce the social responsibility of the workforce', with over 35,000 jobs expected to be cut across Germany by 2030.

While the job cuts are significant, they will save Volkswagen 1.5 billion euros annually in labor costs. Additionally, the company's production capacity in Germany will be reduced by 734,000 units to better align with market demand. Volkswagen expects to save over 15 billion euros, approximately 15.6 billion dollars, cumulatively in the medium term.

Volkswagen stated that the agreement 'combines job security with financial stability and a leading technological position in sustainable mobility'. The savings will help to 'lay the foundation for important investments in future products through 2030'.

In a statement, Volkswagen CEO Oliver Blume said, 'This agreement is an important signal for the future of the Volkswagen brand and its commercial vehicles. The company has charted a crucial path for its future in terms of costs, capabilities, and structures. In the future, Volkswagen's Wolfsburg plant will produce ID.3 and CUPRA BORN models, while the production of Golf and Golf Estate will move to Mexico in 2027, but the electric Golf will continue to be manufactured in Germany by the end of the decade.

The Emden plant will continue to produce ID.4 and ID.7, while the Osnabrück plant will cease production of the T-Roc Cabrio in mid-2027. The Zwickau plant will build Audi Q4 e-tron and Q4 e-tron Sportback, while Volkswagen's luxury plant in Dresden will stop production by the end of next year, currently producing ID.3, and Volkswagen is exploring options for the plant, including 'third-party manufacturing plans'.

In Hanover, the manufacturing of ID.Buzz and Multivan will continue. Furthermore, Volkswagen's component sites in Kassel, Braunschweig, Salzgitter, Hanover, Wolfsburg, and Chemnitz will be retained.

Read More

Volkswagen Amarok, this charming second-generation vehicle, while living in the shadow of its sister model Ford Ranger, consistently manages to captivate attention with its unique allure.

Detail: Volkswagen Amarok Unveils Special Desert Edition

Volkswagen announced that it will discontinue production of its classic compact car, the Polo, in Europe, ending 40 years of production of this model in Europe.

Detail: Volkswagen's classic small car Polo officially discontinued