German automaker Volkswagen (VW) has announced a comprehensive restructuring plan for its operations in Germany due to the slowdown in the European Union's automotive sector. The company has decided to make significant cuts in production and employment at its factories by 2030.
Although VW management initially planned to close three car production plants, they have since abandoned this decision. However, large-scale layoffs and production cuts have still been announced.
The "Zukunft Volkswagen" (Future of Volkswagen) agreement between VW and the IG Metall union will determine the company's strategy for the coming years. According to VW's statement on December 20, while the initially planned plant closures have been canceled, substantial workforce and production reductions will still be implemented.
The plan includes reducing total production capacity at German factories by 734,000 units by 2030 and a projected workforce decrease of over 35,000 employees. The IG Metall union stated that the cuts would be implemented in a "socially responsible" manner, offering solutions such as partial retirement.
Volkswagen emphasizes that these moves will provide the necessary financial conditions to achieve its goal of technological leadership in the global market. The company aims to save 1.5 billion euros ($1.56 billion) annually in labor costs for its German operations and plans to increase its total medium-term annual savings target to over 15 billion euros.
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