Volkswagen Reaches 'Christmas Miracle' Agreement: Reduces German Capacity by 734,000 Units, Cuts 35,000 Jobs by 2030
Volkswagen announced a comprehensive adjustment of its German business on Friday, reducing the production capacity of German factories by 734,000 units, which is approximately a quarter of Volkswagen's total capacity in Germany; in addition, by 2030, 35,000 jobs will be cut in Germany, accounting for about a quarter of the total number of employees in the division.
Volkswagen and the union engaged in a tough negotiation that lasted for 70 hours, setting the longest negotiation record in the company's 87-year history. Union leaders praised the agreement as a 'Christmas Miracle'.
Reuters reported, and the main content of this agreement is as follows:
Reuters believes that the agreement reached between Volkswagen and the union is a helpless move to deal with the current market challenges. Although it avoided a large-scale strike, it also indicates that the company will undergo significant adjustments. In the future, whether Volkswagen can successfully transform still needs to be tested by time.
