Volkswagen secures jobs: No factory closures by 2030!

Volkswagen secures jobs: No factory closures by 2030!

Volkswagen, Deutschland - Volkswagen causes excitement in the automotive industry: On December 20, 2024, the largest automobile manufacturer in Germany made an agreement with IG Metall, which will have an important impact on the future of the company. After a tough negotiation process that took more than 70 hours, it was decided to reduce over 35,000 jobs by 2030. Despite this ominous number, however, the closure of works remains averted. As the Today.

agreement achieved in turbulent times

The negotiations between Volkswagen and the union were anything but simple. IG Metall had originally called for a wage increase by 2031, and this claim was now withdrawn as part of the compromise. Daniela Cavallo, the head of the works council, confirmed in a statement that all ten works in Germany will remain open until the end of 2030 and that the jobs are secured. The New York Times emphasizes that the agreement is not only shaped by the long-term strategy Volkswagen to coping with overcapacities and falling orders.

The uncertainty about the future of Volkswagen, which is under pressure in Europe due to the increasing competition from China and a declining demand in Europe, already led to short warning strikes in December. If no agreement could have been reached, more extensive strikes would have been possible from January. With the decline in the share price by more than a third within a year, Volkswagen was in the terminal, which may have contributed to this agreement.