Volkswagen to cut 35,000 jobs, shifts Golf production to Mexico
After prolonged negotiations, the German labour union IG Metall and Volkswagen's management have agreed. VW has decided it will not close any German factories, but it will significantly reduce employment. It has also made a decision regarding the production of its flagship model, the Golf. The petrol version will no longer be assembled in Germany.
The agreement reached on Friday includes, among other things, not closing any of the ten factories located in Germany until 2030 (earlier reports suggested that up to three factories might be at risk of closure) and a reduction of 35,000 jobs. The remaining workforce will have a job guarantee until the end of the decade.
According to Volkswagen, the reduction of over 35,000 jobs by 2030 will be conducted in a socially responsible manner.
The classic Golf will leave Germany
Volkswagen also announced in a press release historic changes regarding the factory in Wolfsburg, the city where the company is headquartered. All previous generations of the Golf have been assembled at this plant, including the current one. However, as VW announced, in 2027, the production of the classic petrol model of the Golf and the Golf Estate model will be moved to the Mexican town of Puebla. Only the electric version of the Golf will be produced in Wolfsburg.
Previous generations of the Golf have already been produced for years in Puebla (and a number of other cities worldwide). The current eighth generation is being assembled in Wolfsburg, the Chinese city of Foshan, and Pekan in Malaysia.
The agreement reached on Friday ends a weeks-long dispute between the company and the IG Metall trade union, which represents Volkswagen workers. While the company demanded pay reductions and no salary increases for the next two years, union members called for wage increases. Volkswagen has ten factories in Germany, six in Lower Saxony, three in Saxony, and one in Hesse.
