Volkswagen is considering a range of cost-cutting strategies for its main brand, including a proposed 10% wage reduction and a two-year wage freeze, to save 4 billion euros, as reported by Handelsblatt on Sunday, citing sources within the company. Facing economic pressures, the automaker is under increased pressure to streamline costs. At the same time, employees have expressed frustration over the absence of a clear future direction, despite management’s promise of a forthcoming plan.
According to media reports, Volkswagen’s leadership is exploring several potential savings options, such as limiting bonuses for senior employees, reducing anniversary payouts, and potentially closing some production sites in Germany. A Volkswagen spokesperson declined to comment on ongoing discussions with the company’s works council and IG Metall, the influential metalworkers’ union in Germany.
Since early October, Volkswagen executives have met weekly with representatives from its German plants, assessing potential areas for cost reductions and deciding which models will be produced at each facility. According to a union spokesperson, negotiations over wage increases are being handled separately, with the next formal round scheduled for October 30.
