In recent years, VW has faced increasing competition from China and the US, especially in the electric vehicle (EV) sector. The automaker is reorganizing production across its plants to adapt to its evolving electrified lineup, reducing German plant capacity by 734,000 vehicles.
In a challenging business environment characterized by shrinking market share and rising energy costs, VW has secured a deal with German labor unions. This agreement avoids the closure of several plants but will result in 35,000 job reductions by 2030.
- Wolfsburg: Production of the electric Golf will continue, but 4,000 job cuts are expected, and assembly lines will be reduced by half.
- Dresden: Vehicle production will end by 2025, with potential future use by a partner automaker.
- Emden: Production of the ID.4, ID.7 sedan, and Tourer will continue.
- Zwickau: Will keep producing Audi Q4 e-tron models but will consolidate vehicle production to a single line by 2027.
VW's adaptation is driven by intensified competition, especially from Tesla and various Chinese brands in the European market. Despite the challenges, VW remains optimistic about its future positioning.
Amid these changes, the start of Scout production in North America, set for 2027 near Columbia, South Carolina, promises growth opportunities for VW.
Summary: VW negotiates a pivotal deal to avoid plant closures, planning significant job cuts to address growing global competition and reallocate resources for an electrified future.
