Volkswagen to End Job Security Programme

(Reuters) – Volkswagen (ETR:VOWG_p) announced plans to terminate its job security programme, active since 1994, which currently protects jobs until 2029. The decision comes amid increasing competition from Asian manufacturers.

The IG Metall union highlights that several German factories could face job cuts following this move. The affected plants are primarily in Lower Saxony, with one located in Hesse.

Affected Volkswagen Plants

BRUNSWICK

• Employees: Approx. 7,400 (as of 2022)
• Location: Brunswick, a city of about 250,000
• Production: Components including front and rear axles, steering systems, battery systems, machinery, tools, and moulds, as well as batteries for the new modular electric drive matrix (MEB) vehicles since 2019.

EMDEN

• Employees: More than 8,000
• Location: Emden, population around 50,000
• Production: Initially focused on VW Beetle; currently manufactures around 180,000 vehicles annually, including VW Passat and electric models like ID.4.

HANOVER

• Employees: Around 14,000
• Location: Lower Saxony, home to ~8 million residents; Volkswagen’s second-largest shareholder
• Production: Known for VW ‘Bulli’ vans since 1956, now produces various camper vans, minivans, and pickup trucks along with components like cylinder heads.

KASSEL

• Employees: Approx. 16,500
• Location: Kassel, population about 200,000
• Production: VW’s largest components plant globally, producing over four million transmissions yearly. Supplies parts for core VW brands and others, including Audi and Lamborghini.

SALZGITTER

• Employees: Around 7,500 (as of 2023)
• Location: Salzgitter, population just over 100,000
• Production: Initially for VW’s K70 model; now manufacturers engine variants and electric vehicle components. A €2 billion investment was announced in 2021 to transform it into a main battery cell plant.

WOLFSBURG

• Employees: Approximately 70,000
• Location: Wolfsburg, Lower Saxony
• Production: VW’s headquarters; produces nearly half a million vehicles annually, including VW Golf. The plant covers an area equivalent to 910 soccer fields and was established in 1938.

($1 = 0.9045 euros)