Following intense negotiations between Volkswagen AG, IG Metall (German commerce union) and the works council, a joint settlement entitled “Zukunft Volkswagen” [Future Volkswagen] has been concluded, the corporate introduced.
In a press release, VW introduced a realignment of manufacturing capacities on the German websites of Volkswagen AG and the creation of the mandatory situations for a discount in labor prices of 1.5 billion euros per yr to the agreed degree collectively, with an settlement on firm salaries till 2030.
The short-term discount in labor prices and the agreed structural measures by way of capability discount and decrease growth prices will result in price financial savings of greater than €4 billion per yr within the medium time period, a stated VW.
As well as, a capability discount of 734,000 models at German factories is deliberate. In accordance with the corporate, this “will allow Volkswagen AG to put the foundations for vital investments in future merchandise till 2030.” VW additionally stated the corporate’s structural realignment at an operational and collective degree would create the mandatory situations to “obtain the return on gross sales goal of the Volkswagen Passenger Automobiles model within the medium time period.”
Settlement was additionally reached on what was referred to as “a socially accountable discount within the workforce of greater than 35,000 folks at German Volkswagen websites by 2030.” This features a new job safety plan till 2030.
VW stated the deal would ship sustainable financial savings to Volkswagen AG of greater than 15 billion euros a yr within the medium time period. Of this sum, greater than 4 billion euros per yr will come from present negotiations on labor prices, structural and manufacturing measures and the usage of amenities.
Labor prices alone can be diminished by €1.5 billion per yr.
VW stated a full and last evaluation of the impression of those price results on the VW Group’s working revenue in 2025 and subsequent years can be made “within the coming weeks.” At this stage, the corporate doesn’t count on any vital impression on the outlook for the 2024 monetary yr.
The said widespread purpose of “Zukunft Volkswagen” is for the Volkswagen Passenger Automobiles model, the center of Volkswagen AG, to develop into the world’s main know-how producer by quantity by 2030.
VW stated there’s additionally job safety for Volkswagen AG employees on the collectively agreed degree till the tip of 2030, as agreed throughout collective bargaining. “Zukunft Volkswagen” additionally “now ensures commercially sustainable manufacturing at German websites”. To this finish, the corporate and the works council have agreed on a socially accountable workforce discount of greater than 35,000 folks at Volkswagen’s German websites by 2030, alongside structural manufacturing measures.
Oliver Blume, CEO of the Volkswagen Group, stated: “After lengthy and intensive negotiations, the settlement is a vital sign for the long run viability of the Volkswagen model, Volkswagen Industrial Autos and the part vegetation. With all of the agreed measures, the corporate has set a decisive course for its future when it comes to prices, capacities and buildings. We at the moment are as soon as once more in a position to efficiently form our personal future. The board of administrators and all the administration workforce make a greater than proportionate monetary contribution.
Gunnar Kilian, Chief Human Assets Officer of the Volkswagen Group and Labor Director of Volkswagen AG, stated: “Zukunft Volkswagen” marks the elemental realignment of Volkswagen AG. The said purpose of all negotiating companions was to not discover a short-term compromise, however to develop a elementary settlement that has a financially sustainable impact and creates prospects for our factories and staff. After very intensive negotiations, now we have now achieved this along with the works council. I want to thank everybody concerned, particularly our lead negotiator Arne Meiswinkel and his workforce, who’ve proven distinctive dedication. The end result of the negotiations will enable us to place our firm for the long run, to keep up manufacturing in Germany and make it aggressive, so as to deliver Volkswagen again to the highest. »
Thomas Schäfer, CEO of the Volkswagen Passenger Automobiles model, stated: “We’ve set ourselves three priorities for the way forward for the Volkswagen model: lowering overcapacity in Germany, lowering labor prices and reaching decrease prices. aggressive growth. The negotiations produced viable ends in all three areas. Due to the agreed set of measures, we’re in a position to largely shut the hole in our efficiency program. We’ve thus laid the foundations to make Volkswagen the technologically main mass producer by 2030 – with a transparent plan, strong merchandise and a transparent dedication to Germany as a enterprise location.
Some particulars
The agreed use of amenities supplies for the next realignments for Volkswagen Passenger Automobiles vegetation:
Wolfsburg [Production]: Sooner or later, the ID.3 and CUPRA Born fashions may even be manufactured on the head workplace. Manufacturing of Golf and Golf Property fashions can be relocated to Puebla in Mexico from 2027. Manufacturing will thus be focused on two meeting strains as an alternative of 4 at the moment. The way forward for the plant may even be assured on the finish of the last decade with the introduction of the electrical Golf and one other mannequin based mostly on the long run SSP electrical automobile structure.
Wolfsburg [Technical Development]: So as to have the ability to make investments extra in innovation, Technical Growth is being reorganized to make it extra environment friendly. By utilizing the Group’s synergies, the competitiveness of Technical Growth can be sustainably strengthened. As a part of this realignment, round 4,000 jobs can be eradicated by 2030. Duties may even be transferred to different places within the technical growth community. Sooner or later, the technical growth division of the Volkswagen Passenger Automobiles model can be accountable for the event community of the principle model group.
Emden: The Emden plant will proceed to provide the ID.7 sedan, ID.7 Tourer and ID.4 even after the facelift.
Osnabrück: The T-Roc Cabrio can be manufactured in Osnabrück till mid-2027. Choices for a special use of the location are at the moment being explored.
Zwickau: Zwickau will stay a manufacturing website for the Audi This fall e-tron and Audi This fall e-tron Sportback. In consequence, automobile manufacturing can be focused on a single line from 2027.
As well as, new areas of exercise have to be developed throughout the framework of the round financial system.
Dresden: Automobile manufacturing on the Clear Plant in Dresden can be discontinued on the finish of 2025. Volkswagen AG is engaged on various choices. These embody the chance for Volkswagen AG to take part in a third-party program.
Volkswagen Industrial Autos: Volkswagen Industrial Autos’ primary plant in Hannover will stay the manufacturing website for the ID.Buzz and Multivan. Concrete measures have been agreed to sustainably scale back manufacturing facility prices. It will enable Volkswagen Industrial Autos to create the idea for investing in future merchandise utilizing its personal sources.
Volkswagen Group Parts: To make sure the competitiveness of Volkswagen Group Parts, a sustainable improve in effectivity of as much as 3 billion euros cumulatively by 2030 is focused. The emphasis is on growing economies of scale by systematically focusing the product portfolio on core strategic parts. On this foundation, labor prices can be diminished by round 500 million euros per yr. The Volkswagen Group Parts websites in Kassel, Braunschweig, Salzgitter, Hannover, Wolfsburg and Chemnitz can be retained and plant prices can be frequently reviewed. New working time fashions can be launched to make manufacturing capacities extra versatile.
“Volkswagen and IG Metall attain settlement on price reductions in Germany” was initially created and revealed by Just automatica model owned by GlobalData.
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