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Volkswagen to cut 35,000 jobs by 2030 – RM19 billion saving targeted, Germany output to drop by 734k units

Volkswagen to cut 35,000 jobs by 2030 – RM19 billion saving targeted, Germany output to drop by 734k units

Posted on December 23, 2024 By rehan.rafique No Comments on Volkswagen to cut 35,000 jobs by 2030 – RM19 billion saving targeted, Germany output to drop by 734k units

Volkswagen to cut 35,000 jobs by 2030 – RM19 billion saving targeted, Germany output to drop by 734k units

Volkswagen will be cutting 35,000 jobs across its German locations by 2030, with the aim of saving 1.5 billion euros (RM7.03 billion) annually in labour costs through the Zukunft Volkswagen (translated as Future Volkswagen) agreement, the manufacturer has announced. This comes as the manufacturer group concluded the joint agreement with employee representatives.

This will also see the manufacturer reduce its production capacity by 734,000 units across the affected German plants, and along with decrease in development costs, aims to save up more than four billion euros (RM18.75 billion) annually.

For the Volkswagen passenger cars brand, this will see production of the Golf hatchback and estate models moved from the Wolfsburg headquarters to Puebla in Mexico from 2027.

Meanwhile, the ID.3 and Cupra Born will continue to be produced at Wolfsburg, thus reducing the number of assembly lines from four to two, says the manufacturer. The Wolfsburg plant will also produce the Golf EV and another, future EV based on the SSP platform.

The new Volkswagen ID.3

2024 Volkswagen ID.7 GTX debut-1

2024 Audi Q4 e-tron update-4

2024 Audi Q4 Sportback e-tron update-2

The technical development division at Wolfsburg will have 4,000 jobs cut by 2030, while tasks will be transferred to other sites that are part of its technical development network, Volkswagen said. Future technical development work for the Volkswagen passenger cars brand will be the responsibility of the group’s development network, it added.

In terms of its BEV models, the ID.7 sedan, ID.7 Tourer and ID.4 will continue to be manufactured at the Emden plant, even after their facelift updates. The Osnabrück site will produce the T-Roc cabriolet until 2027, though other production sites for this model are being considered.

For Audi, the Zwickau plant will continue to produce the Q4 e-tron and Q4 e-tron Sportback, and vehicle production at this site will be from a single line from 2027, says Volkswagen. Meanwhile, the ‘Transparent Factory’ in Dresden will cease vehicle production at the end of 2025.

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