Volkswagen to lay off thousands of workers in Germany and move Golf production to Mexico

After lengthy negotiations with the IG Metall trade union, Volkswagen has reached an agreement: about 35,000 employees will lose their jobs, but job guarantees will be introduced for the rest. Production capacity will be reduced by 734,000 vehicles per year by 2030, and Golf production will be moved to Mexico.

This reduction in staff will allow Volkswagen to save €1.5 billion a year, with a total financial gain of more than €15 billion in the long term. According to the management, this will create the basis for future investments in new models.

There are no plans to close the plants. The Wolfsburg plant will refocus on the production of ID.3 and Cupra Born electric cars, while Golf production will move to Mexico in 2027. At the same time, the next-generation electric Golf will remain assembled in Germany.

Emden will continue to produce the VW ID.4 and ID.7. Zwickau will focus on the Audi Q4 e-tron and Q4 e-tron Sportback. Hanover will remain the birthplace of the ID.Buzz and Multivan.

The future of the Osnabrück plant, which will produce the T-Roc Cabrio until 2027, remains uncertain. Volkswagen is looking for new options for its use. The situation is also difficult at Gläserne Manufaktur in Dresden, which will stop production of the VW ID.3 this year. There are no new plans for the site yet.

Source: Volkswagen