Volkswagen cuts 35,000 jobs, shifts Golf production to Mexico
After extensive negotiations, the German labor union IG Metall and the management of Volkswagen have reached an agreement. VW has decided not to close German factories, but it will significantly reduce its workforce. It has also made a decision about the production of its flagship model, the Golf: the gasoline version will no longer be assembled in Germany.
The agreement, finalized on Friday, includes several key points. Most notably, none of the 10 factories in Germany will be closed until 2030, even though earlier reports suggested that up to three could be at risk. However, there will be a reduction of 35,000 jobs. The employees who remain will have job security through 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 historic changes regarding the factory in Wolfsburg, the city where the company is headquartered. At this plant, all previous generations of the Golf have been assembled, including the current one. However, VW has announced that in 2027, the production of the classic gasoline 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, as well as in several 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 concludes a weeks-long dispute between the company and the IG Metall trade union, which represents Volkswagen workers. While the company sought pay reductions and no raises for the next two years, union members demanded wage increases. Volkswagen has ten factories in Germany, with six located in Lower Saxony, three in Saxony, and one in Hesse.
