Agreement reached: Volkswagen AG positions itself competitively for the future – AutoMart Canada

A full and final assessment of the impact of these cost effects on the Group’s operating profit in 2025 and subsequent years will be made in the coming weeks. At this point in time, the company does not expect any significant impact on the outlook for the 2024 financial year.

The ‘Zukunft Volkswagen’ agreement sees Volkswagen AG and the employee representatives agreeing on a vision for the company that combines job security, financial stability and a leading technological position in the field of sustainable mobility. The jointly declared goal is for the Volkswagen Passenger Cars brand, the core of Volkswagen AG, to become the technologically leading volume manufacturer globally by 2030.

The comprehensive capacity reduction across the German plants and significant and sustainable decrease in labour costs of €1.5 billion per year as part ofof the ‘Zukunft Volkswagen’ agreementhave now created the financial conditions for this goal. They also now provide job security for the workforce of Volkswagen AG at the collectively agreed level until the end of 2030, as agreed during the collective bargaining negotiations. ‘Zukunft Volkswagen’ also now ensures commercially sustainable production at the German sites. To this end, the company and Works Council have agreed on a socially responsible reduction in the workforce of more than 35,000 across Volkswagen’s German sites by 2030, alongside the structural production measures.

Oliver Blume, CEO of the Volkswagen Group:

‘Following the long and intensive negotiations, 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. The Board of Management and the wider management team are making a greater than proportional financialcontribution.”

Gunnar Kilian, Chief Human Resources Officer of the Volkswagen Group and Labour Director of Volkswagen AG:

‘’‘Zukunft Volkswagen’ marks the fundamental realignment of Volkswagen AG. It was the declared goal of all negotiating partners not to find a short-term compromise, but to develop a fundamental agreement that has a financially sustainable effect and creates prospects for our plants and workforces. After very intensive negotiations, we have now succeeded in doing this together with the Works Council. I would like to thank everyone involved, especially our lead negotiator Arne Meiswinkel and his team, who have shown outstanding commitment. The outcome of the negotiations will enable us to position our company for the future, maintain production in Germany and make it competitive, in order to lead Volkswagen back to the top.”

Thomas Schäfer, CEO of the Volkswagen Passenger Cars brand:

‘We have set ourselves three priorities for the future of the Volkswagen brand: Reduce overcapacity in Germany, reduce labour costs and achieve competitive development costs. The negotiations have led to viable results in all three areas. With the agreed package of measures, we are in a position to largely close the gap in our performance programme. We have thus created the basis for making Volkswagen the technologically leading volume manufacturer by 2030 – with a clear plan, strong products and a clear commitment to Germany as a business location.”

Agreement at company level

At the company level, the company and employee representatives have agreed to realign the production capacities of the German Volkswagen plants with new structures and technologies to ensure competitiveness. To this end, production capacity in Germany will be reduced by approximately 734,000 units. The company is thereby responding to the decreasing automotive market in Europe and the increasingly fierce competition, while at the same time creating the fundamental requirements for continued commercially viable production at its home base in Germany.

The plant utilisation agreed upon provides for the following realignments for the plants of the Volkswagen Passenger Cars brand:

Wolfsburg (Production):

• In future, the ID.3 and CUPRA Born models will also be manufactured at the headquarters.
• Production of the Golf and Golf Estate models will be relocated to Puebla in Mexico from 2027.
• As a result, production will be focused on two assembly lines instead of four today.
• The future of the plant will also be secured at the end of the decade with the introduction of the electric Golf and another model based on the future SSP electric car architecture.

Wolfsburg (Technical Development)

• In order to be able to invest more in innovation, Technical Development is being reorganised to make it more effective. By utilising Group synergies, the competitiveness of Technical Development will be sustainably strengthened.
• As part of this realignment, around 4,000 jobs will be cut by 2030. Tasks will also be transferred to other locations within the Technical Development network.
• In the future, the Technical Development department of the Volkswagen Passenger Cars brand will be responsible for the core brand group’s development network.

Emden:

• The Emden plant will continue to produce the ID.7 saloon, ID.7 Tourer and the ID.4, even after the facelift.

Osnabrück:

• The T-Roc Cabrio will be manufactured in Osnabrück until mid-2027. Options for a different use of the site are currently being explored.

Zwickau:

• Zwickau will remain a production location for the Audi Q4 e-tron and Audi Q4 e-tron Sportback. As a result, vehicle production will focus on a single line from 2027.
• In addition, new business areas are to be developed in the context of the circular economy.

Dresden:

• Vehicle production at the ‘Transparent Factory’ in Dresden will be discontinued at the end of 2025. 
• Volkswagen AG is working on alternative options. These include the possibility of Volkswagen AG participating in a third-party scheme.