VW locations in danger: tens of thousands of jobs at risk!

VW locations in danger: tens of thousands of jobs at risk!

Volkswagen is facing a major challenge: an extensive savings plan was launched to optimize the heavily strained production capacities in several German plants. From December 2024, production in plants such as Wolfsburg, Zwickau and Osnabrück will be severely restricted, endangering the fate of many jobs in Germany. Loud News38 The aim is to reduce production capacity in Wolfsburg by 500,000 units - a worrying number considering that the maximum capacity there is 800,000 and only 523,000 cars were manufactured last year.

The future of the Osnabrück site is also uncertain, as production here is to be reduced by 56,000 units. The T-Roc Cabrio will still be manufactured until 2027, but uncertainty remains. VW is planning a reduction of 170,000 units in Zwickau, where a maximum of 300,000 are currently produced per year. The Transparent Factory in Dresden is also planning a reduction of 8,000 units.

Impact on the workforce

The announced measures also have significant consequences for employees. An internal report points out that job security for the workforce in Germany is in question until 2029, which makes operational dismissals possible. As the South German newspaper As described, the works council will inform about these concerns at extraordinary meetings on Wednesday. The austerity measures have already had an impact, especially for temporary workers, especially in the electric car factory in Zwickau.

A controversial topic is possible plant closures in Germany, which can no longer be ruled out, for which works council boss Daniela Cavallo has announced resistance. Lower Saxony's Prime Minister Stephan Weil emphasizes that solutions must be found and closing locations should not be on the agenda. The question remains how many jobs could be lost here while the number of employees in the ten German plants totals over 120,000.

Market analysis and challenges

Volkswagen faces a tough market in which sales of electric vehicles remain sluggish while competition from Chinese manufacturers intensifies. As the CTOL Digital reports, the economic conditions have deteriorated significantly since 2020. The European market has recorded a decline of two million vehicles, which further increases the pressure on VW.

CEO Thomas Schäfer speaks of an unsustainable business model and plans drastic savings, including pay cuts of up to 10% for remaining employees. In addition, the unions are already active and are warning of protests, while collective bargaining is due in the fall, which will demand a wage increase of seven percent.

The challenges that Volkswagen is currently experiencing are complex. The need for restructuring is becoming increasingly urgent in order to ensure long-term competitiveness. This is just the beginning of a difficult journey for the German automaker, and the coming months will be crucial.