Volkswagen cuts 35,000 jobs, shifts Golf production to Mexico
After lengthy negotiations, the German labour union IG Metall and Volkswagen's management have reached an agreement. VW has decided not to close its German factories, but it will significantly reduce its workforce. It has also made a decision regarding the production of its flagship model, the Golf. The gasoline version will no longer be assembled in Germany.
The agreement reached on Friday includes, among other things, a commitment not to close any of the 10 factories located in Germany until 2030. Earlier reports had suggested that up to three factories might be at risk of closure. Additionally, there will be a reduction of 35,000 jobs, but the remaining workforce will have job security 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 historical 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, as VW announced, 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 Golf have already been produced for years in Puebla and several other cities worldwide. The current eighth generation is being assembled in Wolfsburg, as well as in 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 pay raises for the next two years, union members called for wage increases. Volkswagen has ten factories in Germany, with six located in Lower Saxony, three in Saxony, and one in Hesse.
