Volkswagen Ends Job Security Program Amid Competitive Pressure

Volkswagen plans to terminate its job security program, effective since 1994 to prevent job cuts until 2029, due to competition from Asian manufacturers. The announcement may impact several German factories, causing potential job losses and closures. The company's evolved production landscape features diverse manufacturing capabilities across multiple locations.

Volkswagen has announced plans to end its long-standing job security program, which has been in place since 1994 to prevent job cuts until 2029, citing mounting pressure from Asian competitors.

The IG Metall union has identified potential impacts on several German factories, including those in Osnabrueck and Dresden, which analysts have previously flagged as possible closure targets. These plants span across different states in Germany, including Lower Saxony, Hesse, and Saxony.

Volkswagen's varied manufacturing footprint includes its Brunswick plant, employing 7,400 workers; Emden, with over 8,000 employees; and the Kassel plant, the largest components facility within the VW group. Additionally, the Salzgitter and Wolfsburg plants are vital to the production of engines and vehicles, with Wolfsburg serving as the company's headquarters. Volkswagen's focus on electric vehicles is evident in its investments and production shifts across these key sites.

(With inputs from agencies.)