Volkswagen to End Job Security Program

Volkswagen announced plans to terminate its job security program, which has protected employment since 1994 until 2029, amid increasing competition from Asian automakers.

The IG Metall union indicated that several German factories could be impacted, highlighting past mentions of the Osnabrueck and Dresden sites as targets for closure. Most of these facilities are located in Lower Saxony, with the Kassel plant in Hesse and Dresden in Saxony.

Overview of Affected Factories

Brunswick

• Employees: ~7,400 (2022)
• Population: ~250,000
• Production: Components like axles, steering systems, battery systems; batteries for electric vehicles since 2019.

Emden

• Established: 1964
• Employees: >8,000
• Population: ~50,000
• Production: Models like VW Passat and VW electric ID.4, producing ~180,000 vehicles/year.

Hanover

• Employees: ~14,000
• Region: Lower Saxony (8 million population)
• Production: VW ‘Bulli’ and T-Series vans, parts like cylinder heads.

Kassel

• Established: 1958
• Employees: ~16,500
• Population: ~200,000
• Production: Largest components plant; over 4 million transmissions/year.

Salzgitter

• Opened: 1970
• Employees: ~7,500 (2023)
• Production: Engine variants and components for electric vehicles; 2 billion euro investment for battery cell plant.

Wolfsburg

• Established: 1938
• Employees: ~70,000
• Production: Core production site, produced almost half a million vehicles, including the VW Golf in 2023.

Dresden

• Opened: 2001
• Employees: 340 (as of December 2023)
• Production: Initially produced Phaeton, now focusing on electric models like ID.3.

Osnabrueck

• Acquired: 2009
• Employees: 2,300
• Production: Specializes in small-series production for VW, Skoda, Porsche, and Bentley; upcoming production challenges due to shifts in Porsche’s plans.

Note: Exchange rate of $1 = 0.9045 euros