VW to cut managers' salaries by 10 per cent for two years
Volkswagen has announced that it is cutting costs. One way to reduce them is to cut managers' salaries. According to Süddeutsche Zeitung, VW and employees have agreed to cut pay by ten per cent in 2025 and 2026. In the next three years, some 4,000 managers will give up eight, six and five per cent respectively. By 2030, VW is expected to emerge from the crisis and will not need further pay cuts.
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A few days earlier, Volkswagen announced that it had reached a compromise agreement with the IG Metall union to restructure the company. It will not close plants in Germany, but will cut 35,000 jobs and reduce production capacity by 734,000 vehicle units per year by 2030. Together with cost reductions for new developments, these measures will save the company more than €4.0bn a year in the medium term.
In addition, roles will be redistributed between Volkswagen's plants in Germany. For example, Wolfsburg from 2027 will cease to produce Golf and Golf Estate with internal combustion engines - the production of these models will be transferred to Mexico. But already by 2030 at the main plant should establish production of electric Golf next generation and another fully electric model on a promising platform SSP. In addition, VW ID.3 and CUPRA Born models will be produced there.
At the same time, the prospects of the car plants in Osnabrück and Dresden (the famous "Gläserne Manufaktur") remain vague. The former will stop production of the VW T-Roc Cabrio in mid-2027, while the latter will stop producing cars as early as the end of 2025.
Source: Süddeutsche Zeitung
