- VW will reportedly double planned layoffs to 100,000 workers.
- It may also close four factories, including the Audi plant.
- The VW core brand can be separated from the VW Group.
Volkswagen has already announced plans to eliminate 50,000 jobs across the main VW brand, Audi, Porsche and its software subsidiary CARIAD in Germany by the end of the decade. However, according to a new report, the cost-cutting plan is much more drastic. The number of layoffs could double to 100,000, although it is unclear whether all the cuts will occur by 2030 or continue into the next decade. VW has job protection agreements in place until 2030, while Audi’s remain in effect until the end of 2033.
As if that wasn’t bad enough, as published by the report manager magazine It is alleged that VW plans to close at least four factories: Zwickau, Emden, Hanover and Neckarsulm. The company will reportedly close the plant after production of its current models ends. The Zwickau site makes the Audi Q4 e-tron, Q4 Sportback e-tron and Cupra Born, as well as the ID.3, ID.4 and the likely-to-be-discontinued ID.5 for Volkswagen.
The Emden facility assembles the ID.4, ID.7 and ID.7 Tourer. Meanwhile, the Hanover factory produces commercial vehicles such as the Transporter/Caravel, ID. Buzz, and Multivan/California. Neckarsulm is Audi’s production site for the A5, A6, A8 and E-Tron GT. The flagship sedan will go out of production this year, but the luxury automaker has promised a new A8-replacement flagship later this decade.
Photo by: Audi
manager magazine It is also alleged that VW is planning a major structural overhaul. Core brands and component subsidiaries will reportedly be split into separate companies, independent from the broader VW Group. The move will pave the way for newly formed companies to be individually listed on the stock exchange.
As expected, a spokesperson declined to comment on the report. However, the fact that VW has not outright denied the claims suggests that there may be some truth to them. manager magazine is a respected German business publication and presumably has reliable sources familiar with the changes reportedly taking place within the VW Group. As the saying goes, there is no smoke without fire.
Motor1’s Opinion: Eliminating 100,000 jobs from an automotive giant that employs about 657,000 people underlines the scale of the change that VW Group looks ready to undertake. The closure of the four factories will see the closure of the Dresden site, which once produced the Phaeton and later the ID.3, as well as Audi’s Brussels factory, where the Q8 e-tron and Q8 Sportback e-tron were produced.
Additionally, VW is moving Golf production out of Germany by moving assembly of its most iconic model from Wolfsburg to Puebla, Mexico in 2027. Through these sweeping changes, the company hopes to become more competitive as Chinese automakers gain ground globally, especially in the EV segment.
Source:
Manager Magazine (subscription required)
