That's not happening right now. But by 2035, Volkswagen will have laid off 35,000 employees and closed several factories. The settlement was reached on Friday evening.
Volkswagen is laying off 35,000 employees and closing two car factories as part of a comprehensive savings plan. After intense negotiations between Volkswagen and the German union IG Metall, an agreement has been reached that will result in the dismissal of 35,000 employees by 2030.
The agreement, which was reached on Friday evening, also means the closure of two factories. Volkswagen has confirmed that vehicle production in Dresden will end in 2024, while production in Osnabrück will stop in late summer 2027.
The future of the Osnabrück factory is uncertain, but the agreement dictates that a plan for the site's future must be drawn up.
This is what Handelsblatt writes.
The savings plan is expected to reduce Volkswagen's production capacity by 734,000 cars annually and generate total savings of 150 billion euros.
The agreement does not involve immediate factory closures, and Volkswagen has assured that the cuts will be implemented in a socially responsible manner without direct layoffs.
– We had three priorities in the negotiations: to reduce overcapacity at the German plants, to reduce labor costs and to reduce development costs to a competitive level.
"We have achieved sustainable solutions to all three problems," says Volkswagen CEO Thomas Schäfer.
Management had originally demanded a ten percent pay cut. But this was rejected by the union. Instead, staff have agreed to remain without pay increases until 2030 and receive a reduced bonus.
Daniela Cavallo, head of the union's cooperation committee, expresses satisfaction with the agreement.
– Although there are collective bargaining concessions beyond the monthly income, these are offset by the solidary preservation of all places including future prospects, new job security until the end of 2030.
The IG Metall union sees the agreement as a victory, as Volkswagen had originally wanted to both lower wages and close several factories.
