Volkswagen will not lay off or close factories - agreement reached

Volkswagen reaches agreement with the IG Metall union. Here's what it provides for

The Volkswagen plant in Wolfsburg

Photo by: Volkswagen

By: Massimo Grassi

Published by: Brian Potter

Dec 21, 2024 at 2:20am ET

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A marathon. This is how the negotiations with Volkswagen are defined by IG Metall, the German metalworkers' union - which came to an end after no less than 70 hours of discussions. Almost three days ended with an agreement that - according to the union - 'paves the way for a comprehensive safety package for VW employees and sites'.

In fact, there will be no redundancies or plant closures, as was expected by the group's top management until a few days ago.

The plans for the Volkswagen factories

In the long (and triumphant) press release, IG Metall takes stock of what will be the fate of the various VW plants. "Without products and added value the best job security is of no use in the long term. To this end, IG Metall, the general works council and Volkswagen AG have agreed on a timetable for the occupation of the plants in connection with collective bargaining,' it reads.

Wolfsburg: is being rebuilt and will be ready for several flagships on the SSP platform and the new (electric) generation of the Golf, called ID.Golf from 2029. Therefore the current generation of the German compact car will be produced elsewhere, while the ID.3 and the Cupra Born, currently produced in Zwickau, will arrive.

Volkswagen Golf plug-in

Photos by: Volkswagen

Volkswagen ID.3

Braunschweig: various components for the SSP platform will be produced here.

Chemnitz: no news for the plant producing petrol engines for the Group.

Dresden: the historic crystal factory, which was created for the ill-fated Phaeton, will assemble the ID.3 until the end of 2025. From 2026 it will remain in Volkswagen ownership and be the subject of 'an alternative global concept'.

Emden: ID.7 and ID.7 Tourer will remain in place and will be joined from 2026 by the restyled ID.4, while a fourth model will be added in 2027.

Hanover: no news for the plants producing ID. Buzz and T7 Multivan

Kassel: will be built for the SSP platform and hot stamping and foundry capacities will be utilised

Volkswagen ID.7 Tourer

Osnabrück: Despite predictions, production of the Volkswagen T-Roc cabriolet will take longer than expected, at least until summer 2027. The aim is to 'develop a future economic perspective for the location'.

Salzgitter: no danger for cell production (CP2) and in the event of a slowdown in the electric strategy, assembly of the EA211 engine will continue

Zwickau: remains the Audi Q4 e-tron and could form an electric hub with Wolfsburg, with the possibility also of becoming 'a pioneer in the group: this time to enter the circular economy'

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No sites will be closed, no one will be laid off and our internal wage agreements will be guaranteed for the long term. With this triad we have achieved a solid solution under very difficult economic conditions. Even if there are collective concessions beyond the monthly income, these are compensated by the solidarity-based preservation of all sites, including future prospects, the security of new jobs until the end of 2030 and, last but not least, the certainty for the Board of Directors that changes at Volkswagen against the will of the workers are doomed to failure

commented Teresa Cavallo, President of the General Works Council of Volkswagen AG.