Following intensive negotiations between Volkswagen AG, IG Metall (German labour union) and the Works Council, a joint settlement entitled ‘Zukunft Volkswagen’ [Future Volkswagen] has been concluded, the corporate has introduced.
In an announcement, VW mentioned it realigning manufacturing capacities at Volkswagen AG’s German places and creating the circumstances for a discount in labour prices of €1.5 billion per yr on the collectively agreed stage with an settlement on the corporate wage settlement till 2030.
The short-term discount in labour prices and the agreed structural measures via capability discount and a lower in improvement prices will result in value financial savings of over €4 billion per yr within the medium time period, VW mentioned.
As well as, a discount in capability of 734,000 models throughout the German crops is deliberate. This, the corporate mentioned, ‘will allow Volkswagen AG to put the muse for necessary investments in future merchandise via to 2030’. VW additionally mentioned the structural realignment of the corporate at an operational and collective stage will create the circumstances for ‘reaching the return-on-sales goal for the Volkswagen Passenger Vehicles model within the medium time period’.
There was additionally settlement on what was termed ‘socially accountable discount of the workforce by greater than 35,000 throughout Volkswagen’s German places by 2030’. This features a newly formulated job safety plan via to 2030.
VW mentioned the settlement will obtain sustainable value financial savings for Volkswagen AG of greater than €15 billion per yr within the medium time period. Of this, over €4 billion per yr will come from the current negotiations on labour prices, structural and manufacturing measures and plant utilisation.
Labour prices alone will probably be lowered by €1.5 billion per yr.
VW mentioned a full and closing evaluation of the impression of those value results on the VW Group’s working revenue in 2025 and subsequent years will probably be made ‘within the coming weeks’. At this time limit, the corporate doesn’t count on any vital impression on the outlook for the 2024 monetary yr.
The ‘Zukunft Volkswagen’ collectively declared purpose is for the Volkswagen Passenger Vehicles model, the core of Volkswagen AG, to develop into the technologically main quantity producer globally by 2030.
VW mentioned there may be additionally job safety for the workforce of Volkswagen AG on the collectively agreed stage till the top of 2030, as agreed through the collective bargaining negotiations. ‘Zukunft Volkswagen’ additionally now ‘ensures commercially sustainable manufacturing on the German websites’. To this finish, the corporate and Works Council have agreed on a socially accountable discount within the workforce of greater than 35,000 throughout Volkswagen’s German websites by 2030, alongside the structural manufacturing measures.
Oliver Blume, CEO of the Volkswagen Group, mentioned: “Following the lengthy and intensive negotiations, the settlement is a vital sign for the longer term viability of the Volkswagen model, Volkswagen Industrial Autos and the element crops. With the package deal of measures that has been agreed, the corporate has set a decisive course for its future when it comes to prices, capacities and buildings. We at the moment are again ready to efficiently form our personal future. The Board of Administration and the broader administration crew are making a larger than proportional monetary contribution.”
Gunnar Kilian, Chief Human Assets Officer of the Volkswagen Group and Labour Director of Volkswagen AG mentioned: “Zukunft Volkswagen’ marks the basic realignment of Volkswagen AG. It was the declared purpose of all negotiating companions to not discover a short-term compromise, however to develop a elementary settlement that has a financially sustainable impact and creates prospects for our crops and workforces. After very intensive negotiations, we’ve now succeeded in doing this along with the Works Council. I wish to thank everybody concerned, particularly our lead negotiator Arne Meiswinkel and his crew, who’ve proven excellent dedication. The end result of the negotiations will allow us to place our firm for the longer term, keep manufacturing in Germany and make it aggressive, so as to lead Volkswagen again to the highest.”
Thomas Schäfer, CEO of the Volkswagen Passenger Vehicles model mentioned: “‘We’ve set ourselves three priorities for the way forward for the Volkswagen model: Scale back overcapacity in Germany, scale back labour prices and obtain aggressive improvement prices. The negotiations have led to viable ends in all three areas. With the agreed package deal of measures, we’re ready to largely shut the hole in our efficiency programme. We’ve thus created the premise for making Volkswagen the technologically main quantity producer by 2030 – with a transparent plan, sturdy merchandise and a transparent dedication to Germany as a enterprise location.”
Some particulars
The plant utilisation agreed upon offers for the next realignments for the crops of the Volkswagen Passenger Vehicles model:
Wolfsburg [Production]: In future, the ID.3 and CUPRA Born fashions can even be manufactured on the headquarters. Manufacturing of the Golf and Golf Property fashions will probably be relocated to Puebla in Mexico from 2027. Because of this, manufacturing will probably be centered on two meeting traces as an alternative of 4 at this time. The way forward for the plant can even be secured on the finish of the last decade with the introduction of the electrical Golf and one other mannequin primarily based on the longer term SSP electrical automobile structure.
Wolfsburg [Technical Development]: So as to have the ability to make investments extra in innovation, Technical Growth is being reorganised to make it more practical. By utilising Group synergies, the competitiveness of Technical Growth will probably be sustainably strengthened. As a part of this realignment, round 4,000 jobs will probably be minimize by 2030. Duties can even be transferred to different places inside the Technical Growth community. Sooner or later, the Technical Growth division of the Volkswagen Passenger Vehicles model will probably be answerable for the core model group’s improvement community.
Emden: The Emden plant will proceed to provide the ID.7 saloon, ID.7 Tourer and the ID.4, even after the facelift.
Osnabrück: The T-Roc Cabrio will probably be manufactured in Osnabrück till mid-2027. Choices for a distinct use of the location are at present being explored.
Zwickau: Zwickau will stay a manufacturing location for the Audi This fall e-tron and Audi This fall e-tron Sportback. Because of this, car manufacturing will deal with a single line from 2027.
As well as, new enterprise areas are to be developed within the context of the round economic system.
Dresden: Automobile manufacturing on the ‘Clear Manufacturing facility’ in Dresden will probably be discontinued on the finish of 2025. Volkswagen AG is engaged on different choices. These embody the potential of Volkswagen AG taking part in a third-party scheme.
Volkswagen Industrial Autos: The primary plant Volkswagen Industrial Autos plant in Hanover will stay the manufacturing website for the ID.Buzz and the Multivan. Concrete measures have been agreed to sustainably scale back manufacturing unit prices. It will allow Volkswagen Industrial Autos to create the premise for investing in future merchandise utilizing its personal sources.
Volkswagen Group Elements: In an effort to make sure the competitiveness of Volkswagen Group Elements, a sustainable effectivity improve of as much as €3 billion cumulatively by 2030 is focused. The main focus is on rising economies of scale by systematically focusing the product portfolio on strategic core elements. On this foundation, labour prices will probably be lowered by round €500 million per yr. The Volkswagen Group Elements websites in Kassel, Braunschweig, Salzgitter, Hannover, Wolfsburg and Chemnitz will probably be retained and manufacturing unit prices will probably be repeatedly reviewed. New working time fashions will probably be launched to make manufacturing capacities extra versatile.
“Volkswagen and IG Metall strike settlement on Germany value cuts” was initially created and revealed by Simply Auto, a GlobalData owned model.
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