Volkswagen AG, IG Metall, and the Works Council have finalized the ‘Zukunft Volkswagen’ [Future Volkswagen] agreement, setting the company on a course for sustainable success. Key measures include a €1.5 billion annual reduction in labor costs and a planned capacity reduction of 734,000 units across German plants by 2030. These changes, combined with structural adjustments and cost-saving initiatives, are expected to generate medium-term savings of over €4 billion annually. This agreement also ensures job security for the workforce at collectively agreed levels until 2030 and paves the way for significant investments in future products.
The agreement aligns Volkswagen’s production and workforce strategy with its goal to become the global leader in sustainable mobility by 2030. It supports the company’s vision of achieving financial stability and technological leadership while maintaining a socially responsible approach to workforce reductions, with over 35,000 positions set to be phased out across German sites by the end of the decade. A detailed assessment of the cost impacts on the Group’s operating profit is expected in the coming weeks, with no immediate changes anticipated for the 2024 financial outlook.
Oliver Blume, CEO of the Volkswagen Group:
‘Following the long and intensive negotiations, the agreement is an important signal for the future viability of the Volkswagen brand, Volkswagen Commercial Vehicles and the component plants. With the package of measures that has been agreed, the company has set a decisive course for its future in terms of costs, capacities and structures. We are now back in a position to successfully shape our own destiny. The Board of Management and the wider management team are making a greater than proportional financialcontribution.”
Gunnar Kilian, Chief Human Resources Officer of the Volkswagen Group and Labour Director of Volkswagen AG:
‘’‘Zukunft Volkswagen’ marks the fundamental realignment of Volkswagen AG. It was the declared goal of all negotiating partners not to find a short-term compromise, but to develop a fundamental agreement that has a financially sustainable effect and creates prospects for our plants and workforces. After very intensive negotiations, we have now succeeded in doing this together with the Works Council. I would like to thank everyone involved, especially our lead negotiator Arne Meiswinkel and his team, who have shown outstanding commitment. The outcome of the negotiations will enable us to position our company for the future, maintain production in Germany and make it competitive, in order to lead Volkswagen back to the top.”
Thomas Schäfer, CEO of the Volkswagen Passenger Cars brand:
‘We have set ourselves three priorities for the future of the Volkswagen brand: Reduce overcapacity in Germany, reduce labour costs and achieve competitive development costs. The negotiations have led to viable results in all three areas. With the agreed package of measures, we are in a position to largely close the gap in our performance programme. We have thus created the basis for making Volkswagen the technologically leading volume manufacturer by 2030 – with a clear plan, strong products and a clear commitment to Germany as a business location.”
