Volkswagen has confirmed cutting more than 35,000 jobs in Germany and moving Golf production to Mexico

Volkswagen Golf production in Wolfsburg. Source: Volkswagen AG

Volkswagen and the trade union IG Metall have reached an agreement called "Zukunft Volkswagen" [Future Volkswagen]. The company will cut more than 35,000 jobs in Germany and reduce production capacity in the country by 734,000 units per year by 2030. In addition, there will be a reshuffling of model production between different companies.

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Reducing staff and overcapacity as well as lowering development costs will save Volkswagen more than €4.0bn a year in the medium term. This will help Volkswagen AG lay the groundwork for important investments in future products until 2030.

"Zukunft Volkswagen" envisages the following reallocations at the Volkswagen Passenger Cars and Volkswagen Commercial Vehicles plants:

Wolfsburg:

• The parent company will continue to produce the VW ID.3 and CUPRA Born models.
• Production of the Golf and Golf Estate models will be relocated to Puebla, Mexico, from 2027.
• The remaining production will be centred on two assembly lines instead of the current four.
• By 2030, the next-generation electric Golf and another model on the new SSP electric vehicle platform will begin production there.

Emden:

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

Osnabrück:

• The VW T-Roc Cabrio will be produced in Osnabrück until mid-2027. The further future of the plant is vague. The company is "exploring options for a different utilisation of the site".

Zwickau:

• Zwickau will remain the production site for the Audi Q4 e-tron and Audi Q4 e-tron Sportback. From 2027 onwards, production of the vehicles will be centred on one line.

Dresden:

• Car production at the famous "Gläserne Manufaktur" factory will cease at the end of 2025. What to do with the factory next, Volkswagen has not yet come up with an idea. However, the company admits that the plant will take part "in a third-party scheme".

Hanover:

• Volkswagen Commercial Vehicles' main plant in Hanover will remain the production site for the ID.Buzz and Multivan. However, factory production costs will be reduced.

In addition, Volkswagen will reorganise the technical development division in Wolfburg. As part of this reorganisation, around 4,000 jobs will be cut by 2030. New development tasks will be redistributed between Volkswagen Passenger Cars and the Volkswagen Group, based on Group synergies.

Gläserne Manufaktur in Dresden. Photo: Volkswagen AG

Volkswagen has also promised not to close component plants. At the same time, labour costs will be reduced by about 500 million euros. New working time models will be introduced to make production facilities more flexible.

Source: Volkswagen