Volkswagen workers in Germany step up strikes Monday in row with automaker over potential plant closures and layoffs. Workers at nine sites across the country will extend their walkouts by four hours, doubling the length of strikes launched in early December, the IG Metall union announced Thursday. &nbsp;

Volkswagen management and labor representatives are currently braced for tough pacts on cost cuts in negotiations that start Monday. But the automaker says they are necessary to keep it competitive at a time when costs are rising and global rivals are only providing more pressure. &nbsp;

As multi-billion dollar company is open to dialogue between management and labor representatives, both being committed to finding ways to balance economic stability and job security, Volkswagen said. &nbsp;

Economic and Industry Context &nbsp;

The dispute is another challenge for the European continent's biggest carmaker, amid growth concerns for Germany's economy and fierce competition from international carmakers. It’s been beset in recent years by rising costs, supply chain disruptions and a shift toward electric vehicles, said Bill Ginsberg, a senior manager in the region’s automotive industry. &nbsp;

Defending the proposed measures on Wednesday, Volkswagen Group CEO Oliver Blume added that the automotive industry and the market is experiencing rapid change and that tough decisions are involved. In interview, Blume emphasised that the company’s structural challenges cannot be delayed: 'Management cannot work in a world of fantasy,' he said. &nbsp;

Union Pushback

But the IG Metall union has denounced the company's way. Wishing the workforce a Merry Christmas while planning layoffs as a surprise holiday callousness borders on mockery, IG Metall negotiator Thorsten Groeger told Reuters. &nbsp;

But if an agreement isn't reached during the talks, which are scheduled to begin this week, workers are warning they could increase their tactics, perhaps with longer or potentially indefinite strikes. &nbsp;

Impact and Outlook

The strikes underscore tensions within Volkswagen as it navigates significant restructuring. For Germany, which has long relied on the automotive sector as an economic cornerstone, the dispute signals deeper challenges as the industry adapts to shifting global dynamics. &nbsp;

Both sides face mounting pressure to reach a resolution that secures Volkswagen’s future while addressing workers’ concerns over job security and the company’s domestic footprint.

Volkswagen workers in Germany step up strikes Monday in row with automaker over potential plant closures and layoffs. Workers at nine sites across the country will extend their walkouts by four hours, doubling the length of strikes launched in early December, the IG Metall union announced Thursday.

Volkswagen workers in Germany step up strikes Monday in row with automaker over potential plant closures and layoffs. Workers at nine sites across the country will extend their walkouts by four hours, doubling the length of strikes launched in early December, the IG Metall union announced Thursday. Volkswagen management and labor representatives are currently braced for tough pacts on cost cuts in negotiations that start Monday. But the automaker says they are necessary to keep it competitive at a time when costs are rising and global rivals are only providing more pressure. As multi-billion dollar company is open to dialogue between management and labor representatives, both being committed to finding ways to balance economic stability and job security, Volkswagen said. Economic and Industry Context The dispute is another challenge for the European continent's biggest carmaker, amid growth concerns for Germany's economy and fierce competition from international carmakers. It’s been beset in recent years by rising costs, supply chain disruptions and a shift toward electric vehicles, said Bill Ginsberg, a senior manager in the region’s automotive industry. Defending the proposed measures on Wednesday, Volkswagen Group CEO Oliver Blume added that the automotive industry and the market is experiencing rapid change and that tough decisions are involved. In interview, Blume emphasised that the company’s structural challenges cannot be delayed: 'Management cannot work in a world of fantasy,' he said. Union Pushback But the IG Metall union has denounced the company's way. Wishing the workforce a Merry Christmas while planning layoffs as a surprise holiday callousness borders on mockery, IG Metall negotiator Thorsten Groeger told Reuters. But if an agreement isn't reached during the talks, which are scheduled to begin this week, workers are warning they could increase their tactics, perhaps with longer or potentially indefinite strikes. Impact and Outlook The strikes underscore tensions within Volkswagen as it navigates significant restructuring. For Germany, which has long relied on the automotive sector as an economic cornerstone, the dispute signals deeper challenges as the industry adapts to shifting global dynamics. Both sides face mounting pressure to reach a resolution that secures Volkswagen’s future while addressing workers’ concerns over job security and the company’s domestic footprint.

Volkswagen workers escalate strikes over potential German plant closures

Volkswagen, one of Germany's largest automakers, is facing widespread strikes as tens of thousands of workers protest against proposed job cuts and factory closures. Watch in for more details!

Volkswagen Workers Strike Over Job Cuts & Factory Closures

Volkswagen has emerged as the world’s most indebted company, with 212 billion dollars in total debt. This comes as the overall increase in corporate debt reached a record $8.18 trillion, driven primarily by mergers and acquisitions. Volkswagen’s borrowing, alongside other major players in sectors like healthcare and automotive, highlights how companies are leveraging debt to finance growth and expansion. Watch to know more!

Volkswagen Tops Global Debt Chart With $212 Billion Owed

Tensions between labor unions and VW management are deepening, with workers at nine VW plants across Germany stopping production on Monday for two hour strike. Walkouts, called by IG Metall, represent an escalation in standoff on proposed cost cutting measures including a 10 per cent pay cut and potential plant closures.

To tackle weak European demand, growing competition from Chinese carmakers, high production costs and challenges in the electric vehicle transition, Volkswagen says drastic action is necessary. But workers and union leaders say the proposed measures unfairly target employees and ignoring the underlying problems with the company.

The strikes started at the automaker's flagship Wolfsburg headquarters where it employs 70,000 workers, and is halting production of some 600 vehicles including the famous Golf. Key plants at Hanover, Zwickau and other sites were hit by further strikes. VW's electric vehicle plant in Zwickau, which is open only to workers there, is to be hit by an extended strike from Tuesday. &nbsp;

The expiry of Saturday's agreement banning industrial action paved the way for the strikes. If negotiations set for December 9 fail to produce progress, the dispute could escalate, warned union officials. VW's works council head Daniela Cavallo stressed that mass layoffs, wage cuts and plant closures are non-negotiable red lines for workers. &nbsp;

Cavallo said 'Management's recent signals are far from encouraging' and called on VW's major shareholders — including the state of Lower Saxony, and the Porsche-Piëch clan — to make sacrifices, including lower dividends, to save the jobs.

During protests, union representatives and workers criticised the company. A band and flags, and signs were hoisted in Hanover by workers. The diesel emissions scandal along with the slow progress in China is unacceptable and we expect management to stand up and take responsibility for what they decide, said IG Metall official Sascha Dudzik. &nbsp;

Lucia Heim, a worker at the Hanover plant, likened management’s actions to punishing players instead of coaches in football. “It’s a twisted world,” she remarked. &nbsp;

Volkswagen stated it respects the workers’ right to strike and has taken measures to minimise disruption. However, the company dismissed union-proposed savings of €1.5 billion as insufficient. &nbsp;

As tensions escalate, the outcome of the December 9 negotiations will be pivotal in determining the future of VW’s operations in Germany.

Tensions between labor unions and VW management are deepening, with workers at nine VW plants across Germany stopping production on Monday for two hour strike. Walkouts, called by IG Metall, represent an escalation in standoff on proposed cost cutting measures including a 10 per cent pay cut and potential plant closures.

Tensions between labor unions and VW management are deepening, with workers at nine VW plants across Germany stopping production on Monday for two hour strike. Walkouts, called by IG Metall, represent an escalation in standoff on proposed cost cutting measures including a 10 per cent pay cut and potential plant closures. To tackle weak European demand, growing competition from Chinese carmakers, high production costs and challenges in the electric vehicle transition, Volkswagen says drastic action is necessary. But workers and union leaders say the proposed measures unfairly target employees and ignoring the underlying problems with the company. The strikes started at the automaker's flagship Wolfsburg headquarters where it employs 70,000 workers, and is halting production of some 600 vehicles including the famous Golf. Key plants at Hanover, Zwickau and other sites were hit by further strikes. VW's electric vehicle plant in Zwickau, which is open only to workers there, is to be hit by an extended strike from Tuesday. The expiry of Saturday's agreement banning industrial action paved the way for the strikes. If negotiations set for December 9 fail to produce progress, the dispute could escalate, warned union officials. VW's works council head Daniela Cavallo stressed that mass layoffs, wage cuts and plant closures are non-negotiable red lines for workers. Cavallo said 'Management's recent signals are far from encouraging' and called on VW's major shareholders — including the state of Lower Saxony, and the Porsche-Piëch clan — to make sacrifices, including lower dividends, to save the jobs. During protests, union representatives and workers criticised the company. A band and flags, and signs were hoisted in Hanover by workers. The diesel emissions scandal along with the slow progress in China is unacceptable and we expect management to stand up and take responsibility for what they decide, said IG Metall official Sascha Dudzik. Lucia Heim, a worker at the Hanover plant, likened management’s actions to punishing players instead of coaches in football. “It’s a twisted world,” she remarked. Volkswagen stated it respects the workers’ right to strike and has taken measures to minimise disruption. However, the company dismissed union-proposed savings of €1.5 billion as insufficient. As tensions escalate, the outcome of the December 9 negotiations will be pivotal in determining the future of VW’s operations in Germany.

Volkswagen workers strike at nine German plants amid escalating dispute

Workers at nine Volkswagen plants across Germany will strike on Monday, halting production, as their tensions escalate with the automaker over wage cuts and possible plant closures. Tens of thousands of employees are set to take part in demonstrations at major sites including the company's headquarters in Wolfsburg, the Hanover plant, Emden, Salzgitter and Brunswick. &nbsp;

The strikes, planned for several hours, are a turning point in negotiations that have been under way for weeks. Talks beginning on Tuesday (December 9) could also negotiate over 24 hour or even indefinite walkouts if no agreement is reached, Labour representatives have warned. &nbsp;

Volkswagen has to decide for itself how long and hard this confrontation will be at the bargaining table, IG Metall representative Thorsten Gröger said Sunday. &nbsp;

As part of the efforts to counter shrinking sales and declining profit margins Volkswagen is asking for a 10 percent wage cut. Automaker is also mulling closing some German plants for the first time since its 87 year history. &nbsp;

The IG Metall has tabled proposals to save up to 1.5bn euros (USD 1.6 bn) including forgoing 2025 and 2026 bonuses, but Volkswagen has rejected the offer. Volkswagen has yet to meet a union insistence on a long-term plan for every German plant. &nbsp;

Volkswagen has taken steps to minimise disruption, the company spokesperson said, without commenting on the dispute itself, adding that the firm respects workers' right to strike and has provided basic supplies to customers. But the strikes will have a big impact on output, as the automaker struggles with plummeting demand and inventory headaches. &nbsp;

The labour action includes facilities under the umbrella of Volkswagen Sachsen GmbH, including Zwickau plant, which builds electric vehicles. Monday and Tuesday will both see workers down tools at these sites. &nbsp;

This dispute underscores broader challenges for Volkswagen as it contends with market pressures and an increasingly vocal workforce. Analysts say the outcome of these negotiations could set a precedent for labour relations in Germany's automotive industry.

Workers at nine Volkswagen plants across Germany will strike on Monday, halting production, as their tensions escalate with the automaker over wage cuts and possible plant closures.

Workers at nine Volkswagen plants across Germany will strike on Monday, halting production, as their tensions escalate with the automaker over wage cuts and possible plant closures. Tens of thousands of employees are set to take part in demonstrations at major sites including the company's headquarters in Wolfsburg, the Hanover plant, Emden, Salzgitter and Brunswick. The strikes, planned for several hours, are a turning point in negotiations that have been under way for weeks. Talks beginning on Tuesday (December 9) could also negotiate over 24 hour or even indefinite walkouts if no agreement is reached, Labour representatives have warned. Volkswagen has to decide for itself how long and hard this confrontation will be at the bargaining table, IG Metall representative Thorsten Gröger said Sunday. As part of the efforts to counter shrinking sales and declining profit margins Volkswagen is asking for a 10 percent wage cut. Automaker is also mulling closing some German plants for the first time since its 87 year history. The IG Metall has tabled proposals to save up to 1.5bn euros (USD 1.6 bn) including forgoing 2025 and 2026 bonuses, but Volkswagen has rejected the offer. Volkswagen has yet to meet a union insistence on a long-term plan for every German plant. Volkswagen has taken steps to minimise disruption, the company spokesperson said, without commenting on the dispute itself, adding that the firm respects workers' right to strike and has provided basic supplies to customers. But the strikes will have a big impact on output, as the automaker struggles with plummeting demand and inventory headaches. The labour action includes facilities under the umbrella of Volkswagen Sachsen GmbH, including Zwickau plant, which builds electric vehicles. Monday and Tuesday will both see workers down tools at these sites. This dispute underscores broader challenges for Volkswagen as it contends with market pressures and an increasingly vocal workforce. Analysts say the outcome of these negotiations could set a precedent for labour relations in Germany's automotive industry.

Volkswagen faces strikes at nine German plants amid labour dispute

Volkswagen and Toyota tops the list of companies with the highest net debt. Takeovers propel global borrowing to record levels. Watch to know more!

Volkswagen Tops Corporate Debt Rankings, Takeovers Propel Corporate Borrowing | World News | WION

Volkswagen said Wednesday it will sell its Xinjiang operations in China, following years of pressure from rights groups and investors concerned about human rights abuses against the Uyghurs. The automaker also extended its joint venture with Chinese partner SAIC Motor by a decade to 2040, which reiterates its presence in its largest market, even as flagging sales drive it to negotiate deep cuts in equity. &nbsp;

It will be sold to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of state-owned Shanghai Lingang Development Group, which opened the Xinjiang facility in 2013. Test tracks in Xinjiang's Turpan and Shanghai's Anting will be run by SMVIC, which will also be responsible for all employees and operations. Terms of the deal were not disclosed. &nbsp;

The plant could produce 50,000 units per year, but hasn’t made those since 2019. However, its use so far was restricted for final quality checks and vehicle handovers. Volkswagen angrily denied an allegation it maintained the plant to meet Beijing's demands, and said the sale was made on commercial grounds. &nbsp;

Key stakeholders, including Walmart heirs were enthusiastic about the decision, including Volkswagen’s second largest shareholder, Lower Saxony, and Deka Investment, which had been pressuring for withdrawal. Philipp Bleek of Union Investment praised the move as a 'long overdue step that demonstrates that human rights are non-negotiable.' &nbsp;

Like broader markets, Volkswagen's shares slid 0.5% on Wednesday. Stock of the company has tumbled 26 percent this year, after it slashed costs through job cuts and factory closures. &nbsp;

The SAIC partnership extension is a sign that Volkswagen, the world's biggest car maker by sales, continues to stay in China, the world's biggest auto market as trade tensions mount between Beijing, Brussels and Washington. By 2030, it will launch 18 new models, two of which will be extended range electric vehicles in 2026. &nbsp;

Volkswagen’s collaboration with Chinese automakers has expanded to include startups like Xpeng, with plans to develop over 30 EV and hybrid models by 2030, tailored to Chinese consumers. Despite China's relaxation of foreign ownership rules, the SAIC extension signals Volkswagen's intent to maintain its joint venture approach to leverage local expertise and navigate market complexities. &nbsp;

The move aims to preserve market access while resolving reputational concerns, as global scrutiny over Xinjiang's human rights record continues to mount.

Volkswagen said Wednesday it will sell its Xinjiang operations in China, following years of pressure from rights groups and investors concerned about human rights abuses against the Uyghurs.

Volkswagen said Wednesday it will sell its Xinjiang operations in China, following years of pressure from rights groups and investors concerned about human rights abuses against the Uyghurs. The automaker also extended its joint venture with Chinese partner SAIC Motor by a decade to 2040, which reiterates its presence in its largest market, even as flagging sales drive it to negotiate deep cuts in equity. It will be sold to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of state-owned Shanghai Lingang Development Group, which opened the Xinjiang facility in 2013. Test tracks in Xinjiang's Turpan and Shanghai's Anting will be run by SMVIC, which will also be responsible for all employees and operations. Terms of the deal were not disclosed. The plant could produce 50,000 units per year, but hasn’t made those since 2019. However, its use so far was restricted for final quality checks and vehicle handovers. Volkswagen angrily denied an allegation it maintained the plant to meet Beijing's demands, and said the sale was made on commercial grounds. Key stakeholders, including Walmart heirs were enthusiastic about the decision, including Volkswagen’s second largest shareholder, Lower Saxony, and Deka Investment, which had been pressuring for withdrawal. Philipp Bleek of Union Investment praised the move as a 'long overdue step that demonstrates that human rights are non-negotiable.' Like broader markets, Volkswagen's shares slid 0.5% on Wednesday. Stock of the company has tumbled 26 percent this year, after it slashed costs through job cuts and factory closures. The SAIC partnership extension is a sign that Volkswagen, the world's biggest car maker by sales, continues to stay in China, the world's biggest auto market as trade tensions mount between Beijing, Brussels and Washington. By 2030, it will launch 18 new models, two of which will be extended range electric vehicles in 2026. Volkswagen’s collaboration with Chinese automakers has expanded to include startups like Xpeng, with plans to develop over 30 EV and hybrid models by 2030, tailored to Chinese consumers. Despite China's relaxation of foreign ownership rules, the SAIC extension signals Volkswagen's intent to maintain its joint venture approach to leverage local expertise and navigate market complexities. The move aims to preserve market access while resolving reputational concerns, as global scrutiny over Xinjiang's human rights record continues to mount.

Volkswagen exits Xinjiang amid rights concerns, extends SAIC partnership

The Volkswagen labor dispute with the IG Metall union is escalating, though the automaker is bracing for possible strikes across its German operations next week. Friday saw the announcement by the union of thousands of workers that strikes were likely to begin early December when an agreement barring walkouts ran out on November 30. &nbsp;

Monday could see warning strikes lasting a few hours to a day, with sources familiar with the matter warning. The strikes could become 24 hour or even the indefinite kind if negotiations are not resolved. It would be the first big scale industrial action at Volkswagen domestic plants since 2018. &nbsp;

The dispute hinges upon the threatened closures of some plant and 10 percent wage cuts proposed by Volkswagen as it attempts to reduce costs to counter a declining market in Europe and counter the threat of competition from cheaper Chinese rivals. The company, which has been in existence for 87 years, has signalled for the first time that it is willing to close German facilities, sparking fierce resistance from labor representatives. &nbsp;

The two sides will reconvene next week, December 9, to negotiate a new labor agreement. IG Metall wants a long-term plan to save jobs and preserve all Volkswagen plants in Germany, and Daimler's workers there agree. One means of avoiding layoffs while limiting hours or letting go of bonuses will be proposed by a union and be brought up for discussion. But Volkswagen management has said it will not rule out the closure of plants as part of the negotiations. &nbsp;

Volkswagen is already losing ground in its delivery and profits and the strikes could disturb production at a particularly unenviable point. And IG Metall has formally warned the company that its workforce is ready to take sustained action should it prove necessary. &nbsp;

IG Metall said Volkswagen will pass how long and hard this battle will last at the negotiating table. &nbsp;

The stakes are high, as Volkswagen seeks to balance profitability and competitiveness while labor groups aim to protect jobs and secure the future of domestic operations in a challenging economic climate.

The Volkswagen labor dispute with the IG Metall union is escalating, though the automaker is bracing for possible strikes across its German operations next week.

The Volkswagen labor dispute with the IG Metall union is escalating, though the automaker is bracing for possible strikes across its German operations next week. Friday saw the announcement by the union of thousands of workers that strikes were likely to begin early December when an agreement barring walkouts ran out on November 30. Monday could see warning strikes lasting a few hours to a day, with sources familiar with the matter warning. The strikes could become 24 hour or even the indefinite kind if negotiations are not resolved. It would be the first big scale industrial action at Volkswagen domestic plants since 2018. The dispute hinges upon the threatened closures of some plant and 10 percent wage cuts proposed by Volkswagen as it attempts to reduce costs to counter a declining market in Europe and counter the threat of competition from cheaper Chinese rivals. The company, which has been in existence for 87 years, has signalled for the first time that it is willing to close German facilities, sparking fierce resistance from labor representatives. The two sides will reconvene next week, December 9, to negotiate a new labor agreement. IG Metall wants a long-term plan to save jobs and preserve all Volkswagen plants in Germany, and Daimler's workers there agree. One means of avoiding layoffs while limiting hours or letting go of bonuses will be proposed by a union and be brought up for discussion. But Volkswagen management has said it will not rule out the closure of plants as part of the negotiations. Volkswagen is already losing ground in its delivery and profits and the strikes could disturb production at a particularly unenviable point. And IG Metall has formally warned the company that its workforce is ready to take sustained action should it prove necessary. IG Metall said Volkswagen will pass how long and hard this battle will last at the negotiating table. The stakes are high, as Volkswagen seeks to balance profitability and competitiveness while labor groups aim to protect jobs and secure the future of domestic operations in a challenging economic climate.

Volkswagen faces strikes as tensions with German workers intensify

Volkswagen has announced the sale of its operations in China's controversial Xinjiang region, culminating years of mounting international pressure regarding alleged human rights abuses against the Uyghur population.

The automotive manufacturer revealed on Wednesday that it would sell its Xinjiang plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of state-owned Shanghai Lingang Development Group. Simultaneously, the company confirmed an extended partnership with its Chinese collaborator SAIC, prolonging their joint venture until 2040.

The Xinjiang facility, established in 2013 and previously dedicated to assembling Volkswagen's Santana vehicle, had been operating at a significantly reduced capacity in recent years. With approximately 200 employees remaining to conduct final quality checks and vehicle handovers, the plant's annual manufacturing capacity of 50,000 units had remained unused since 2019.

Volkswagen has categorically denied allegations that the plant's continued operation was contingent upon Beijing's requirements for maintaining broader Chinese market access. The company emphasised that the divestment decision was primarily driven by economic rationales.

The sale has been broadly welcomed by key stakeholders, including Lower Saxony—Volkswagen's second-largest shareholder. Deka Investment, a prominent top-20 shareholder, praised the move as likely to conclude controversial discussions with minimal financial repercussions.

Janne Werning from Union Investment characterised the divestment as "a long overdue step which showed that human rights are not negotiable," highlighting the significant ethical dimension of the transaction.

The announcement arrives against a backdrop of escalating trade tensions between China and Western nations. Recent developments, including the European Union's punitive import tariffs on Chinese electric vehicles and potential United States trade restrictions, have significantly complicated international automotive market dynamics.

Despite the Xinjiang plant's sale, Volkswagen remains committed to the Chinese market. The extended partnership with SAIC aims to introduce 18 new models by 2030, including two extended-range models specifically designed for Chinese consumers.

This strategic move reflects the evolving landscape of foreign automotive manufacturing in China, where joint venture requirements have been progressively relaxed. Since 2022, foreign companies have been permitted full ownership of passenger car enterprises, though Volkswagen appears to favour maintaining its collaborative approach.

The company's diversified joint venture portfolio—including partnerships with state-owned entities like FAW and JAC Automobile Group, and the emerging EV-focused startup Xpeng—demonstrates a nuanced approach to navigating China's complex automotive ecosystem.

Following the announcement, Volkswagen's shares experienced a marginal decline of 0.5%, aligning with broader market trends. The stock has witnessed a substantial 26% reduction this year, coinciding with the company's aggressive cost-cutting strategy and restructuring efforts.

Volkswagen has announced the sale of its operations in China's controversial Xinjiang region, culminating years of mounting international pressure regarding alleged human rights abuses against the Uyghur population.

Volkswagen has announced the sale of its operations in China's controversial Xinjiang region, culminating years of mounting international pressure regarding alleged human rights abuses against the Uyghur population. The automotive manufacturer revealed on Wednesday that it would sell its Xinjiang plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of state-owned Shanghai Lingang Development Group. Simultaneously, the company confirmed an extended partnership with its Chinese collaborator SAIC, prolonging their joint venture until 2040. The Xinjiang facility, established in 2013 and previously dedicated to assembling Volkswagen's Santana vehicle, had been operating at a significantly reduced capacity in recent years. With approximately 200 employees remaining to conduct final quality checks and vehicle handovers, the plant's annual manufacturing capacity of 50,000 units had remained unused since 2019. Volkswagen has categorically denied allegations that the plant's continued operation was contingent upon Beijing's requirements for maintaining broader Chinese market access. The company emphasised that the divestment decision was primarily driven by economic rationales. The sale has been broadly welcomed by key stakeholders, including Lower Saxony—Volkswagen's second-largest shareholder. Deka Investment, a prominent top-20 shareholder, praised the move as likely to conclude controversial discussions with minimal financial repercussions. Janne Werning from Union Investment characterised the divestment as "a long overdue step which showed that human rights are not negotiable," highlighting the significant ethical dimension of the transaction. The announcement arrives against a backdrop of escalating trade tensions between China and Western nations. Recent developments, including the European Union's punitive import tariffs on Chinese electric vehicles and potential United States trade restrictions, have significantly complicated international automotive market dynamics. Despite the Xinjiang plant's sale, Volkswagen remains committed to the Chinese market. The extended partnership with SAIC aims to introduce 18 new models by 2030, including two extended-range models specifically designed for Chinese consumers. This strategic move reflects the evolving landscape of foreign automotive manufacturing in China, where joint venture requirements have been progressively relaxed. Since 2022, foreign companies have been permitted full ownership of passenger car enterprises, though Volkswagen appears to favour maintaining its collaborative approach. The company's diversified joint venture portfolio—including partnerships with state-owned entities like FAW and JAC Automobile Group, and the emerging EV-focused startup Xpeng—demonstrates a nuanced approach to navigating China's complex automotive ecosystem. Following the announcement, Volkswagen's shares experienced a marginal decline of 0.5%, aligning with broader market trends. The stock has witnessed a substantial 26% reduction this year, coinciding with the company's aggressive cost-cutting strategy and restructuring efforts.

Volkswagen sells Xinjiang plant, extends partnership with SAIC

Volkswagen has announced its decision to exit China's Xinjiang region by selling all operations to shanghai motor vehicle inspection certification, a state-owned unit. This move comes after years of mounting pressure from rights groups, which have raised concerns over alleged human rights abuses against the Uyghur population in the region. Watch in for more details!

Volkswagen Partners With Saic, Leaves Xinjiang Behind

Volkswagen Exits Xinjiang After Global Pressure

Volkswagen on Wednesday (Nov. 27) said that it will close its exiting plant in China's Xinjiang region after the company and its Chinese partner agreed to sell the asset to a Shanghai government-owned buyer, two people familiar with the issue said.&nbsp;

The German automaker had a joint venture assembly plant in Urumqi, the capital of Xinjiang.&nbsp;

Moreover, it also had two test tracks in the region, maintaining the largest and most visible presence in Xinjiang of any multinational company.&nbsp;

Volkswagen and SAID will now sell the plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of the state-owned Shanghai Lingang Development Group, the sources said.

<a href="https://www.wionews.com/business-economy/cost-cutting-necessary-after-decades-of-structural-problems-volkswagen-ceo-773100">Also read:&nbsp;Cost cutting necessary after 'decades of structural problems: Volkswagen CEO</a>

The company's presence in the country had attracted condemnation from human rights groups&nbsp;that alleged abuses, including mass forced labour in detention camps in the region.&nbsp;

Beijing, however, denies these claims. The Chinese government has also put pressure on global companies to keep doing business in Xinjiang.&nbsp;

Watch |&nbsp;China slammed for treatment of Xinjiang Uighurs

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Earlier in September, the Ministry of Commerce began investigating whether PVH, the corporate parent of the clothing brands Calvin Klein and Tommy Hilfiger, had taken "discriminatory measures" for not buying products from Xinjiang.&nbsp;

Notably, for Volkswagen, the only issue was not just the political liability but also because it was losing money as it was designed to make gasoline-powered cars. But China has now swiftly adopted electric vehicles in the last four years.&nbsp;

Moreover, half of the cars sold in China are now either battery-electric or plug-in hybrid cars.&nbsp;

(With inputs from agencies)

Volkswagen on Wednesday (Nov. 27) said that it will close its exiting plant in China's Xinjiang region after the company and its Chinese partner agreed to sell the asset to a Shanghai government-owned buyer, two people familiar with the issue said.

Volkswagen on Wednesday (Nov. 27) said that it will close its exiting plant in China's Xinjiang region after the company and its Chinese partner agreed to sell the asset to a Shanghai government-owned buyer, two people familiar with the issue said. The German automaker had a joint venture assembly plant in Urumqi, the capital of Xinjiang. Moreover, it also had two test tracks in the region, maintaining the largest and most visible presence in Xinjiang of any multinational company. Volkswagen and SAID will now sell the plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), a subsidiary of the state-owned Shanghai Lingang Development Group, the sources said. Also read: Cost cutting necessary after 'decades of structural problems: Volkswagen CEO The company's presence in the country had attracted condemnation from human rights groups that alleged abuses, including mass forced labour in detention camps in the region. Beijing, however, denies these claims. The Chinese government has also put pressure on global companies to keep doing business in Xinjiang. Watch | China slammed for treatment of Xinjiang Uighurs × Earlier in September, the Ministry of Commerce began investigating whether PVH, the corporate parent of the clothing brands Calvin Klein and Tommy Hilfiger, had taken "discriminatory measures" for not buying products from Xinjiang. Notably, for Volkswagen, the only issue was not just the political liability but also because it was losing money as it was designed to make gasoline-powered cars. But China has now swiftly adopted electric vehicles in the last four years. Moreover, half of the cars sold in China are now either battery-electric or plug-in hybrid cars. (With inputs from agencies)

Volkswagen to close China's Xinjiang plant amid concerns for human rights abuses

As labor tensions grow, Volkswagen's brand chief Thomas Schaefer warned there will be unavoidable lay offs and closures of plants as part of the carmaker's drive to slash 4 billion euros (USD 4.2 billion) in costs. Speaking to online daily Welt am Sonntag, Schaefer recalled that drastic measures are needed to bring down overcapacity and soaring costs.

His comments are made as talks with unions continue, which have threatened strikes from December. The standoff intensified on Monday as union representatives demanded solutions that would prevent closures and see large-scale job cuts.&nbsp;

Schaefer said any solution must deal with overcapacity and costs. "We can't just take temporary fixes and hope that will work." "Otherwise, waiting to do the restructuring will only make things worse."

Schaefer declined to disclose the number of job cuts, but said natural attrition and early retirements might help lessen them a bit. But he stressed that such measures would not be enough, and that the restructuring process needed to be accelerated over the next three to four years rather than dragged out until 2035.

Still, Volkswagen has also proposed a 10 percent pay cut for its German core workforce, an idea that has only helped fuel union opposition. That labor costs in Germany are almost twice as high as at Volkswagen plants in southern and eastern Europe makes domestic units less competitive, Schaefer said.&nbsp;

Previous savings have already helped the company rake in a 7.5 billion euros boost to profits, though it's now targeting USD 6 billion more. Schaefer also predicted it would be a long time before European demand recovered, suggesting urgent need for cost cutting measures.&nbsp;

And he also hinted that both vehicle manufacturing plants and component sites in Germany could be affected by closures.&nbsp;

Volkswagen's restructuring plans reflect broader challenges facing the automotive industry as it grapples with evolving market dynamics, including a shift to electric vehicles and mounting cost pressures. However, the standoff with unions signals a rocky road ahead for one of Europe’s largest carmakers. 
&nbsp;

As labor tensions grow, Volkswagen's brand chief Thomas Schaefer warned there will be unavoidable lay offs and closures of plants as part of the carmaker's drive to slash 4 billion euros (USD 4.

As labor tensions grow, Volkswagen's brand chief Thomas Schaefer warned there will be unavoidable lay offs and closures of plants as part of the carmaker's drive to slash 4 billion euros (USD 4.2 billion) in costs. Speaking to online daily Welt am Sonntag, Schaefer recalled that drastic measures are needed to bring down overcapacity and soaring costs. His comments are made as talks with unions continue, which have threatened strikes from December. The standoff intensified on Monday as union representatives demanded solutions that would prevent closures and see large-scale job cuts. Schaefer said any solution must deal with overcapacity and costs. "We can't just take temporary fixes and hope that will work." "Otherwise, waiting to do the restructuring will only make things worse." Schaefer declined to disclose the number of job cuts, but said natural attrition and early retirements might help lessen them a bit. But he stressed that such measures would not be enough, and that the restructuring process needed to be accelerated over the next three to four years rather than dragged out until 2035. Still, Volkswagen has also proposed a 10 percent pay cut for its German core workforce, an idea that has only helped fuel union opposition. That labor costs in Germany are almost twice as high as at Volkswagen plants in southern and eastern Europe makes domestic units less competitive, Schaefer said. Previous savings have already helped the company rake in a 7.5 billion euros boost to profits, though it's now targeting USD 6 billion more. Schaefer also predicted it would be a long time before European demand recovered, suggesting urgent need for cost cutting measures. And he also hinted that both vehicle manufacturing plants and component sites in Germany could be affected by closures. Volkswagen's restructuring plans reflect broader challenges facing the automotive industry as it grapples with evolving market dynamics, including a shift to electric vehicles and mounting cost pressures. However, the standoff with unions signals a rocky road ahead for one of Europe’s largest carmakers.

Volkswagen boss signals layoffs and plant closures to tackle costs

Volkswagen's union, IG Metall, said the group of strikes planned across German factories beginning December 1 got no breakthrough out of Thursday's wage negotiations. About 120,000 workers at six VW plants in Germany were covered by the union, which was demanding substantial progress in the third round of talks. But both positions are far apart, they said.

The firm has suggested a wage cut of 10 percent to cut costs and improve profits to compete with cheap competition from China and falling demand for cars in Europe. The unprecedented action would see Germany's factories remain closed for the first time since 1932, the company's parent company, Ingvar Kamprad, told The Associated Press.

Volkswagen's management did not propose new counter-proposals, according to union officials, who said the union's proposal had measures to save 1.5 billion euros (USD 1.6 billion) via reduced working hours, postponing up to 1,000 million euros worth of bonuses. The talks will continue December 9, but IG Metall warned they are ready to strike if negotiations continue deadlocked.

The strikes would be the first major action in the works since 2018 at the carmaker and the potential strikes could begin as 'warning strikes' lasting several hours, increasing to longer walkouts if tensions continue. The union has expressed willingness to accept sales of the plant to external buyers to avert job losses but it continues to fight for securing the long-term prospects for its workers and to keep factories open.

The Volkswagen labor dispute is emblematic of wider worries over Germany's industrial future, as the country fights to stay competitive and tackle its own economic challenges. Other automakers, such as Ford and Mercedes, are also grappling with tough conditions as they try to cut costs.

Volkswagen shares have come under pressure, down as much as 1.4%, amid investor concern the company can navigate these issues. Union members are pushing for shareholder contributions, including adjustments to the company’s dividend policy, to ensure a fair balance between profits and worker security.

Volkswagen's union, IG Metall, said the group of strikes planned across German factories beginning December 1 got no breakthrough out of Thursday's wage negotiations.

Volkswagen's union, IG Metall, said the group of strikes planned across German factories beginning December 1 got no breakthrough out of Thursday's wage negotiations. About 120,000 workers at six VW plants in Germany were covered by the union, which was demanding substantial progress in the third round of talks. But both positions are far apart, they said. The firm has suggested a wage cut of 10 percent to cut costs and improve profits to compete with cheap competition from China and falling demand for cars in Europe. The unprecedented action would see Germany's factories remain closed for the first time since 1932, the company's parent company, Ingvar Kamprad, told The Associated Press. Volkswagen's management did not propose new counter-proposals, according to union officials, who said the union's proposal had measures to save 1.5 billion euros (USD 1.6 billion) via reduced working hours, postponing up to 1,000 million euros worth of bonuses. The talks will continue December 9, but IG Metall warned they are ready to strike if negotiations continue deadlocked. The strikes would be the first major action in the works since 2018 at the carmaker and the potential strikes could begin as 'warning strikes' lasting several hours, increasing to longer walkouts if tensions continue. The union has expressed willingness to accept sales of the plant to external buyers to avert job losses but it continues to fight for securing the long-term prospects for its workers and to keep factories open. The Volkswagen labor dispute is emblematic of wider worries over Germany's industrial future, as the country fights to stay competitive and tackle its own economic challenges. Other automakers, such as Ford and Mercedes, are also grappling with tough conditions as they try to cut costs. Volkswagen shares have come under pressure, down as much as 1.4%, amid investor concern the company can navigate these issues. Union members are pushing for shareholder contributions, including adjustments to the company’s dividend policy, to ensure a fair balance between profits and worker security.

Volkswagen union signals strikes in December as wage talks stall

Former Rivian executive Kjell Gruner has been appointed head of Volkswagen's American operations. Pablo Di Si, who had held the position since 2022, stepped down and Gruner has taken over as the new editor of pbs News Hour. Volkswagen is navigating a turbulent EV market and ongoing labor negotiations with the United Auto Workers (UAW) union and is coming off months of political upheaval as the Volkswagen board reshuffled its leadership. &nbsp;

Rivian’s previous chief commercial officer and head of business growth, Gruner brings electric vehicle (EV) strategy experience to Volkswagen’s U.S. division. He previously spent 12 years at Porsche AG and DaimlerChrysler AG, leading a global business in North America and providing a strong pedigree to lead Volkswagen's American business. &nbsp;

Volkswagen’s troubles run through various fronts. Automakers in the U.S. are unsure what regulatory landscape they’ll inhabit next under President-elect Donald Trump, who has promised to wipe away the still USD 7,500 consumer tax credit for EV purchases. But the tax credit has been thus far what keeps the industry going, and taking it away would likely slow the adoption of EVs. If any policy changes are particularly impactful, that means some versions of Volkswagen’s ID.4 electric SUV currently qualify for the credit. &nbsp;

Volkswagen is trialing hard in its passenger car division globally, hitting the brakes on its annual outlook for 2023. Mass layoffs and plant closures in Germany are also on the automaker’s labor chief’s radar, as is broad industry trouble. &nbsp;

Volkswagen’s move to hire Gruner as it pushes ahead with the EV market comes on the heels of a new USD 5.8 billion joint venture with Rivian to build EV architecture and software. The company could stand to benefit from his experience in the EV startup as it makes its move to electrification. &nbsp;

In the U.S., Volkswagen faces heated labor talks, too: Workers at its Tennessee plant voted in April to become unionised, with 73 percent backing unionisation. Secure the contract of course, this is only on top of other priorities in the region. &nbsp;

Gruner’s leadership will be pivotal as Volkswagen balances its EV ambitions, labor relations, and adapting to an evolving regulatory environment in one of its most crucial markets. &nbsp;

Former Rivian executive Kjell Gruner has been appointed head of Volkswagen's American operations. Pablo Di Si, who had held the position since 2022, stepped down and Gruner has taken over as the new editor of pbs News Hour.

Former Rivian executive Kjell Gruner has been appointed head of Volkswagen's American operations. Pablo Di Si, who had held the position since 2022, stepped down and Gruner has taken over as the new editor of pbs News Hour. Volkswagen is navigating a turbulent EV market and ongoing labor negotiations with the United Auto Workers (UAW) union and is coming off months of political upheaval as the Volkswagen board reshuffled its leadership. Rivian’s previous chief commercial officer and head of business growth, Gruner brings electric vehicle (EV) strategy experience to Volkswagen’s U.S. division. He previously spent 12 years at Porsche AG and DaimlerChrysler AG, leading a global business in North America and providing a strong pedigree to lead Volkswagen's American business. Volkswagen’s troubles run through various fronts. Automakers in the U.S. are unsure what regulatory landscape they’ll inhabit next under President-elect Donald Trump, who has promised to wipe away the still USD 7,500 consumer tax credit for EV purchases. But the tax credit has been thus far what keeps the industry going, and taking it away would likely slow the adoption of EVs. If any policy changes are particularly impactful, that means some versions of Volkswagen’s ID.4 electric SUV currently qualify for the credit. Volkswagen is trialing hard in its passenger car division globally, hitting the brakes on its annual outlook for 2023. Mass layoffs and plant closures in Germany are also on the automaker’s labor chief’s radar, as is broad industry trouble. Volkswagen’s move to hire Gruner as it pushes ahead with the EV market comes on the heels of a new USD 5.8 billion joint venture with Rivian to build EV architecture and software. The company could stand to benefit from his experience in the EV startup as it makes its move to electrification. In the U.S., Volkswagen faces heated labor talks, too: Workers at its Tennessee plant voted in April to become unionised, with 73 percent backing unionisation. Secure the contract of course, this is only on top of other priorities in the region. Gruner’s leadership will be pivotal as Volkswagen balances its EV ambitions, labor relations, and adapting to an evolving regulatory environment in one of its most crucial markets.

Volkswagen names former Rivian executive as head of U.S. operations amid industry challenges

Volkswagen Group has decided to increase its planned investment in an announced joint venture with electric vehicle maker Rivian Automotive ahead of the operations launching Wednesday, according to a detailed report by CNBC.<o:p></o:p>

The companies in a joint press release on November 12, said the size of the deal is now up to $5.8 billion, an increase from an initial investment of up to $5 billion, with the first VW models to use Rivian’s software and electrical architecture arriving as early as 2027, the CNBC report detailed further.<o:p></o:p>

Shares of Rivian rallied by more than 6 per cent during after-hours trading. The increase in investment was a consequence of the companies pulling ahead some potential future capital from VW, as well as changes in the deal’s structure, including in equity investment, officials said Tuesday during an investor call.<o:p></o:p>

CEO of Volkswagen Oliver Blume during a press meeting, on November 12 stated that the German automaker expects to use Rivian’s technologies across a wide range of price points, international markets and brands.<o:p></o:p>

The integration of Rivian’s software is expected to start with the Volkswagen brand, followed by Audi as well as VW’s upcoming Scout brand, Blume stated. He also mentioned that “sports cars” could be included but did not specify any particular brand. VW’s brands also include Bentley, Porsche and Lamborghini, among others.<o:p></o:p>

“We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future,” Rivian CEO RJ Scaringe said in a statement.

Further, both Scaringe and Blume said any other plans such as battery modules, joint production of vehicles or sharing other hardware components would need to be in addition to the announced joint venture deal.<o:p></o:p>&nbsp;The name of the joint venture, which was expected to close during the fourth quarter, is Rivian and VW Group Technology, the CNBC report explained further.

Volkswagen has already made an initial investment of $1 billion 

Volkswagen has already made an initial investment of $1 billion in the form of a convertible note, the companies said. At the closing of the joint venture, VW will invest about $1.3 billion “as consideration for background intellectual property licenses and a 50 per cent equity stake in the joint venture.”<o:p></o:p>

The remaining investment of up to $3.5 billion is expected to come by 2027 “in the form of equity, convertible notes, and debt at future dates and based on clearly defined milestones,” according to the companies.<o:p></o:p>&nbsp;The joint venture deal was initially announced in June and came as Rivian sought to raise additional capital as it launched&nbsp;its redesigned models and moved ahead with the production of new “R2” vehicles in early 2026, the CNBC report detailed further.

Scaringe earlier stated that the capital from Volkswagen is expected to carry the company through the production ramp-up of its smaller R2 SUVs at its plant in Normal, Illinois, starting in 2026, as well as production of a midsize EV platform at a plant in Georgia, where Rivian paused construction earlier this year.<o:p></o:p>&nbsp;The joint venture will be headed by Rivian Chief Software Officer Wassym Bensaid and VW Group Chief Technical Engineer Carsten Helbing.<o:p></o:p>

The companies said developers and software engineers from both companies will join the joint venture. Teams will be based initially in Palo Alto, California, and three other sites are in development in North America and Europe. Market participants and investors will carefully follow these developments as this will help them make better and more informed investment decisions.

Volkswagen Group has decided to increase its planned investment in an announced joint venture with electric vehicle maker Rivian Automotive ahead of the operations launching Wednesday, according to a detailed report by CNBC.

Volkswagen Group has decided to increase its planned investment in an announced joint venture with electric vehicle maker Rivian Automotive ahead of the operations launching Wednesday, according to a detailed report by CNBC. The companies in a joint press release on November 12, said the size of the deal is now up to $5.8 billion, an increase from an initial investment of up to $5 billion, with the first VW models to use Rivian’s software and electrical architecture arriving as early as 2027, the CNBC report detailed further. Shares of Rivian rallied by more than 6 per cent during after-hours trading. The increase in investment was a consequence of the companies pulling ahead some potential future capital from VW, as well as changes in the deal’s structure, including in equity investment, officials said Tuesday during an investor call. CEO of Volkswagen Oliver Blume during a press meeting, on November 12 stated that the German automaker expects to use Rivian’s technologies across a wide range of price points, international markets and brands. The integration of Rivian’s software is expected to start with the Volkswagen brand, followed by Audi as well as VW’s upcoming Scout brand, Blume stated. He also mentioned that “sports cars” could be included but did not specify any particular brand. VW’s brands also include Bentley, Porsche and Lamborghini, among others. “We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future,” Rivian CEO RJ Scaringe said in a statement. Further, both Scaringe and Blume said any other plans such as battery modules, joint production of vehicles or sharing other hardware components would need to be in addition to the announced joint venture deal. The name of the joint venture, which was expected to close during the fourth quarter, is Rivian and VW Group Technology, the CNBC report explained further. Volkswagen has already made an initial investment of $1 billion Volkswagen has already made an initial investment of $1 billion in the form of a convertible note, the companies said. At the closing of the joint venture, VW will invest about $1.3 billion “as consideration for background intellectual property licenses and a 50 per cent equity stake in the joint venture.” The remaining investment of up to $3.5 billion is expected to come by 2027 “in the form of equity, convertible notes, and debt at future dates and based on clearly defined milestones,” according to the companies. The joint venture deal was initially announced in June and came as Rivian sought to raise additional capital as it launched its redesigned models and moved ahead with the production of new “R2” vehicles in early 2026, the CNBC report detailed further. Scaringe earlier stated that the capital from Volkswagen is expected to carry the company through the production ramp-up of its smaller R2 SUVs at its plant in Normal, Illinois, starting in 2026, as well as production of a midsize EV platform at a plant in Georgia, where Rivian paused construction earlier this year. The joint venture will be headed by Rivian Chief Software Officer Wassym Bensaid and VW Group Chief Technical Engineer Carsten Helbing. The companies said developers and software engineers from both companies will join the joint venture. Teams will be based initially in Palo Alto, California, and three other sites are in development in North America and Europe. Market participants and investors will carefully follow these developments as this will help them make better and more informed investment decisions.

Rivian-Volkswagen joint venture deal could reach $5.8 billion

Volkswagen has announced a significant increase in its investment in the U.S. EV startup Rivian. The two companies have now kicked off their planned joint venture to develop advanced electrical infrastructure and Rivian's software technology for future EVs across all relevant vehicle segments.

Volkswagen's investment in Rivian has now reached USD 5.8 billion, a 16% increase from the initial USD 5 billion commitment announced in June. This latest cash infusion is a lifeline for the loss-making EV startup, which is gearing up to roll out a smaller, cheaper SUV called R2 amid high borrowing costs and slowing EV demand.

"This partnership and this deal secures the capital for us to ensure that we can't only take Rivian through the launch of R2 at Normal, but secures the launch of and growth of R2 in our Georgia facility and through (to being) cash flow positive for us as a business," said Rivian CEO RJ Scaringe in a statement to reporters.

The R2, which will be the first vehicle to use the new architecture developed through the joint venture, is expected to be produced at Rivian's factory in Normal, Illinois. The company has, however, delayed the construction of its plant in Georgia, applying for a federal loan last month to start building the facility.

The joint venture, named Rivian and VW Group Technology LLC, aims to integrate advanced electrical infrastructure and Rivian's software technology for future EVs of both companies. This collaboration could help ease the German automaker's problems with its own software unit, Cariad, which has been plagued by delays and losses since its inception, according to industry analysts.

Volkswagen plans to invest the USD 5.8 billion in Rivian and the joint venture by 2027, including an initial USD 1 billion convertible note. The Audi-parent will also invest USD 1.3 billion for intellectual property licences and an equity stake, as well as up to USD 3.5 billion in future equity, notes, and debt, all tied to specific milestones.

The joint venture will be led by Rivian's Chief Software Officer, Wassym Bensaid, and Volkswagen Group's Chief Technical Engineer, Carsten Helbing. Developers and engineers in the JV will be based initially in Palo Alto, California, with three additional sites under development.

The partnership is expected to bear fruit in the near future, with plans to launch Rivian's R2 in the first half of 2026 and potentially debut Volkswagen Group models as early as 2027.

The move comes at a critical time for both companies, as they navigate the rapidly evolving EV market. For Rivian, the additional funding and collaboration with a major automaker like Volkswagen could provide the stability and resources needed to weather the current challenges facing the EV industry. For Volkswagen, the partnership represents a strategic investment in securing its own electric future, leveraging Rivian's expertise in software and electrical architecture.

Investors have reacted positively to the news, with Rivian's shares rising nearly 9% in extended trading on Tuesday. The increased investment from Volkswagen is a testament to the German automaker's confidence in Rivian's potential and the two companies' shared vision for the future of electric mobility.

Volkswagen has announced a significant increase in its investment in the U.S. EV startup Rivian. The two companies have now kicked off their planned joint venture to develop advanced electrical infrastructure and Rivian's software technology for future EVs across all relevant vehicle segments.

Volkswagen has announced a significant increase in its investment in the U.S. EV startup Rivian. The two companies have now kicked off their planned joint venture to develop advanced electrical infrastructure and Rivian's software technology for future EVs across all relevant vehicle segments. Volkswagen's investment in Rivian has now reached USD 5.8 billion, a 16% increase from the initial USD 5 billion commitment announced in June. This latest cash infusion is a lifeline for the loss-making EV startup, which is gearing up to roll out a smaller, cheaper SUV called R2 amid high borrowing costs and slowing EV demand. "This partnership and this deal secures the capital for us to ensure that we can't only take Rivian through the launch of R2 at Normal, but secures the launch of and growth of R2 in our Georgia facility and through (to being) cash flow positive for us as a business," said Rivian CEO RJ Scaringe in a statement to reporters. The R2, which will be the first vehicle to use the new architecture developed through the joint venture, is expected to be produced at Rivian's factory in Normal, Illinois. The company has, however, delayed the construction of its plant in Georgia, applying for a federal loan last month to start building the facility. The joint venture, named Rivian and VW Group Technology LLC, aims to integrate advanced electrical infrastructure and Rivian's software technology for future EVs of both companies. This collaboration could help ease the German automaker's problems with its own software unit, Cariad, which has been plagued by delays and losses since its inception, according to industry analysts. Volkswagen plans to invest the USD 5.8 billion in Rivian and the joint venture by 2027, including an initial USD 1 billion convertible note. The Audi-parent will also invest USD 1.3 billion for intellectual property licences and an equity stake, as well as up to USD 3.5 billion in future equity, notes, and debt, all tied to specific milestones. The joint venture will be led by Rivian's Chief Software Officer, Wassym Bensaid, and Volkswagen Group's Chief Technical Engineer, Carsten Helbing. Developers and engineers in the JV will be based initially in Palo Alto, California, with three additional sites under development. The partnership is expected to bear fruit in the near future, with plans to launch Rivian's R2 in the first half of 2026 and potentially debut Volkswagen Group models as early as 2027. The move comes at a critical time for both companies, as they navigate the rapidly evolving EV market. For Rivian, the additional funding and collaboration with a major automaker like Volkswagen could provide the stability and resources needed to weather the current challenges facing the EV industry. For Volkswagen, the partnership represents a strategic investment in securing its own electric future, leveraging Rivian's expertise in software and electrical architecture. Investors have reacted positively to the news, with Rivian's shares rising nearly 9% in extended trading on Tuesday. The increased investment from Volkswagen is a testament to the German automaker's confidence in Rivian's potential and the two companies' shared vision for the future of electric mobility.

Volkswagen doubles down on Rivian and raises investment to USD 5.8 billion

Audi, Volkswagen’s premium brand, has failed to find a buyer for its troubled Brussels manufacturing plant and the facility's closure seems to be a question of 'when,' not 'if', a spokesperson confirmed to AFP Tuesday. Audi recently ended its search for a buyer after a potential investor from the commercial vehicle sector withdrew its interest.

The spokesperson confirmed that an active search for an investor for the site was over, because ‘there is no potential investor.’

As a first step, Audi formed a working group to explore what other uses the Brussels facility could be put to, while trying to come up with a solution that would safeguard as many jobs as possible in the short term. But the group failed to come up with a viable path forward for the plant, which employs about 3,000 workers.

Volkswagen in July said the Brussels site was among locations it was considering shutting because of sluggish demand for its high-end electric vehicles. This is one part of a wider cost cutting efforts at the company, and might also see other German facilities feel the pinch as Volkswagen, hoping to find efficiencies in its production network, looks to reduce production in other locations.

Audi Q8 e-tron, a luxury electric SUV, is produced at the Brussels plant at present. Production of this model will end in February, and the facility will remain with no model or new project to sustain operations.

European automakers are in the midst of a downturn with declining sales of electric vehicles and fierce competition. Although manufacturers such as Volkswagen have invested heavily in EV production, their capabilities have been reduced due to lower than anticipated demand with many manufacturers now forced to reassess their manufacturing footprint.

The closure of the Brussels facility, if finalised, will mark a significant shift for Audi as it grapples with the realities of the evolving automotive landscape. For the plant’s workforce, discussions around a redundancy plan will be the next critical step, as management seeks to navigate the consequences of the impending shutdown. 
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Audi, Volkswagen’s premium brand, has failed to find a buyer for its troubled Brussels manufacturing plant and the facility's closure seems to be a question of 'when,' not 'if', a spokesperson confirmed to AFP Tuesday.

Audi, Volkswagen’s premium brand, has failed to find a buyer for its troubled Brussels manufacturing plant and the facility's closure seems to be a question of 'when,' not 'if', a spokesperson confirmed to AFP Tuesday. Audi recently ended its search for a buyer after a potential investor from the commercial vehicle sector withdrew its interest. The spokesperson confirmed that an active search for an investor for the site was over, because ‘there is no potential investor.’ As a first step, Audi formed a working group to explore what other uses the Brussels facility could be put to, while trying to come up with a solution that would safeguard as many jobs as possible in the short term. But the group failed to come up with a viable path forward for the plant, which employs about 3,000 workers. Volkswagen in July said the Brussels site was among locations it was considering shutting because of sluggish demand for its high-end electric vehicles. This is one part of a wider cost cutting efforts at the company, and might also see other German facilities feel the pinch as Volkswagen, hoping to find efficiencies in its production network, looks to reduce production in other locations. Audi Q8 e-tron, a luxury electric SUV, is produced at the Brussels plant at present. Production of this model will end in February, and the facility will remain with no model or new project to sustain operations. European automakers are in the midst of a downturn with declining sales of electric vehicles and fierce competition. Although manufacturers such as Volkswagen have invested heavily in EV production, their capabilities have been reduced due to lower than anticipated demand with many manufacturers now forced to reassess their manufacturing footprint. The closure of the Brussels facility, if finalised, will mark a significant shift for Audi as it grapples with the realities of the evolving automotive landscape. For the plant’s workforce, discussions around a redundancy plan will be the next critical step, as management seeks to navigate the consequences of the impending shutdown.

Volkswagen's Audi fails to secure buyer for Brussels plant, raising likelihood of closure

Volkswagen said it would invest up to $5.8 billion in a joint venture with Rivian Automotive. The German automaker plans to invest up to $5.8 billion in Rivian. Watch this report for more details!

VW-Rivian Announce Billion Dollar Venture

Volkswagen’s head of investments Sven Fuhrmann has quit from Swedish battery maker Northvolt’s board, the company confirmed Monday. No successor has yet been named, however; and while Fuhrmann was appointed to the board last year, he will be replaced by an appointee from Volkswagen. Northvolt’s annual report says that Volkswagen is the biggest shareholder with a 21 percent stake.

Once projected as a leading hope for Europe in painting next to its neighbors to the continent’s smarter electric-vehicle ambitions, Northvolt has run into production woes, job cuts and has recently lost its key contact in the car business. With additional funding sought from the Swedish battery maker amid these difficulties, it has opened talks with competitors and other stakeholders to access more money but does not name specific investors participating in those discussions.

"Northvolt is a long standing partner of Volkswagen and we are working closely with Volkswagen and its brands that Northvolt serves," Northvolt said in a statement. A strategic relationship: Volkswagen’s brands sourcing from Northvolt include Audi and commercial vehicle manufacturer Scania.

It’s part of Volkswagen’s continued push into the electric vehicle market, and the company is trying to secure battery supply for its growing EV lineup. However, Northvolt’s challenges may put pressure on the strategic partnership in particular as the Swedish company straddles funding and operational hurdles.&nbsp;

Volkswagen also did not respond on Thursday to questions about its plans with Northvolt in the future, or on Fuhrmann's departure.

This latest shift follows mounting pressure on Europe's EV battery industry as China and the U.S. lead the way in battery making. Northvolt's own struggle to keep production momentum underscores the broader impediments to European companies aiming to create competitive space in the quickly emerging electric vehicle supply chain.

Volkswagen’s head of investments Sven Fuhrmann has quit from Swedish battery maker Northvolt’s board, the company confirmed Monday. No successor has yet been named, however; and while Fuhrmann was appointed to the board last year, he will be replaced by an appointee from Volkswagen.

Volkswagen’s head of investments Sven Fuhrmann has quit from Swedish battery maker Northvolt’s board, the company confirmed Monday. No successor has yet been named, however; and while Fuhrmann was appointed to the board last year, he will be replaced by an appointee from Volkswagen. Northvolt’s annual report says that Volkswagen is the biggest shareholder with a 21 percent stake. Once projected as a leading hope for Europe in painting next to its neighbors to the continent’s smarter electric-vehicle ambitions, Northvolt has run into production woes, job cuts and has recently lost its key contact in the car business. With additional funding sought from the Swedish battery maker amid these difficulties, it has opened talks with competitors and other stakeholders to access more money but does not name specific investors participating in those discussions. "Northvolt is a long standing partner of Volkswagen and we are working closely with Volkswagen and its brands that Northvolt serves," Northvolt said in a statement. A strategic relationship: Volkswagen’s brands sourcing from Northvolt include Audi and commercial vehicle manufacturer Scania. It’s part of Volkswagen’s continued push into the electric vehicle market, and the company is trying to secure battery supply for its growing EV lineup. However, Northvolt’s challenges may put pressure on the strategic partnership in particular as the Swedish company straddles funding and operational hurdles. Volkswagen also did not respond on Thursday to questions about its plans with Northvolt in the future, or on Fuhrmann's departure. This latest shift follows mounting pressure on Europe's EV battery industry as China and the U.S. lead the way in battery making. Northvolt's own struggle to keep production momentum underscores the broader impediments to European companies aiming to create competitive space in the quickly emerging electric vehicle supply chain.

Volkswagen investment chief steps down from Northvolt board amid challenges

Volkswagen plans to cut costs to address long-standing structural issues. CEO Oliver Blume said weak market demand in Europe and lower earnings from China highlight these problems, according to a detailed report by Reuters.

Volkswagen may close three factories in Germany, lay off thousands of employees, and reduce operations in remaining plants. It has set aside approximately 900 million euros to implement these changes the report detailed further. 

According to the report, Volkswagen's planned cost-cutting programme was unavoidable to remedy "decades of structural problems" at the German carmaker, CEO Oliver Blume said in an interview published on November 3.

"The weak market demand in Europe and significantly lower earnings from China reveal decades of structural problems at VW," Blume told Sunday paper Bild am Sonntag.

Brief facts about Volkswagen<o:p></o:p>

Volkswagen is a German automobile manufacturer based in Wolfsburg, Lower Saxony, Germany. Established in 1937 by the German Labour Front under the Nazi Party, it was revitalized into the global brand it is today after World War II by British Army officer Ivan Hirst.

The company is well known for its iconic Beetle and serves as the flagship marque of the Volkswagen Group, which became the world's largest automotive manufacturer by global sales in 2016 and 2017.<o:p></o:p>

The group's largest market is China (including Hong Kong and Macau), which accounts for 40 per cent of its sales and profits. The name "Volkswagen" derives from the German words Volk and Wagen, meaning "people's car."

Views of the head of Volkswagen’s work council<o:p></o:p>

The head of Volkswagen's powerful works council said last Monday that the carmaker plans to shut at least three factories in Germany lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul.

The carmaker has not confirmed those plans but on Wednesday it instructed its workers to take a 10 per cent pay cut, arguing it was the only way that Europe's biggest carmaker could save jobs and remain competitive.

Blume said the cost of operating in Germany was a major drag on Volkswagen's competitiveness, telling Bild am Sonntag that "our costs in Germany must be massively reduced."

There was no flexibility on the goals for cost-cutting, only on how they are to be achieved, he said. The carmaker has set aside around 900 million euros ($975.06 million) in its annual report for executing the measures, according to the paper. ($1 = 0.9230 euros)

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Volkswagen plans to cut costs to address long-standing structural issues. CEO Oliver Blume said weak market demand in Europe and lower earnings from China highlight these problems, according to a detailed report by Reuters.

Volkswagen plans to cut costs to address long-standing structural issues. CEO Oliver Blume said weak market demand in Europe and lower earnings from China highlight these problems, according to a detailed report by Reuters. Volkswagen may close three factories in Germany, lay off thousands of employees, and reduce operations in remaining plants. It has set aside approximately 900 million euros to implement these changes the report detailed further. According to the report, Volkswagen's planned cost-cutting programme was unavoidable to remedy "decades of structural problems" at the German carmaker, CEO Oliver Blume said in an interview published on November 3. "The weak market demand in Europe and significantly lower earnings from China reveal decades of structural problems at VW," Blume told Sunday paper Bild am Sonntag. Brief facts about Volkswagen Volkswagen is a German automobile manufacturer based in Wolfsburg, Lower Saxony, Germany. Established in 1937 by the German Labour Front under the Nazi Party, it was revitalized into the global brand it is today after World War II by British Army officer Ivan Hirst. The company is well known for its iconic Beetle and serves as the flagship marque of the Volkswagen Group, which became the world's largest automotive manufacturer by global sales in 2016 and 2017. The group's largest market is China (including Hong Kong and Macau), which accounts for 40 per cent of its sales and profits. The name "Volkswagen" derives from the German words Volk and Wagen, meaning "people's car." Views of the head of Volkswagen’s work council The head of Volkswagen's powerful works council said last Monday that the carmaker plans to shut at least three factories in Germany lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul. The carmaker has not confirmed those plans but on Wednesday it instructed its workers to take a 10 per cent pay cut, arguing it was the only way that Europe's biggest carmaker could save jobs and remain competitive. Blume said the cost of operating in Germany was a major drag on Volkswagen's competitiveness, telling Bild am Sonntag that "our costs in Germany must be massively reduced." There was no flexibility on the goals for cost-cutting, only on how they are to be achieved, he said. The carmaker has set aside around 900 million euros ($975.06 million) in its annual report for executing the measures, according to the paper. ($1 = 0.9230 euros)

Cost cutting necessary after 'decades of structural problems: Volkswagen CEO

In an interview with the German newspaper Bild am Sonntag, Volkswagen CEO Oliver Blume acknowledged that the company's planned cost-cutting program is unavoidable in order to address the "decades of structural problems" that have long plagued the German automaker. Blume's remarks come on the heels of reports that Volkswagen is planning to shut down at least three factories in Germany, lay off tens of thousands of employees, and downsize its remaining plants in Europe's largest economy as part of a deeper-than-expected overhaul.

The CEO's statements provide a revealing glimpse into the challenges Volkswagen has faced, which he attributes to "weak market demand in Europe and significantly lower earnings from China." These issues, Blume says, have exposed "decades of structural problems" that the company can no longer ignore.

In an effort to remain competitive, Volkswagen has already taken steps to reduce its costs, including asking its workers to take a 10% pay cut. Blume emphasised that the company's costs in Germany, in particular, must be "massively reduced," as the high cost of operating in the country has become a significant drag on Volkswagen's competitiveness.

The company has set aside around 900 million euros (USD 975.06 million) in its annual report to execute these cost-cutting measures, underscoring the scale and importance of the restructuring effort.

Blume's comments underscore the profound challenges Volkswagen faces as it seeks to address its long-standing structural issues and position itself for long-term success in an increasingly competitive global automotive market. The CEO made it clear that there is no flexibility on the goals for cost-cutting, only on how they are to be achieved.

The planned factory closures, workforce reductions, and plant downsizings are likely to have a significant impact on Volkswagen's operations and the communities in which it operates. However, Blume maintains that these painful but necessary steps are the only way the company can save jobs and remain competitive.

 
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In an interview with the German newspaper Bild am Sonntag, Volkswagen CEO Oliver Blume acknowledged that the company's planned cost-cutting program is unavoidable in order to address the "decades of structural problems" that have long plagued the German automaker.

In an interview with the German newspaper Bild am Sonntag, Volkswagen CEO Oliver Blume acknowledged that the company's planned cost-cutting program is unavoidable in order to address the "decades of structural problems" that have long plagued the German automaker. Blume's remarks come on the heels of reports that Volkswagen is planning to shut down at least three factories in Germany, lay off tens of thousands of employees, and downsize its remaining plants in Europe's largest economy as part of a deeper-than-expected overhaul. The CEO's statements provide a revealing glimpse into the challenges Volkswagen has faced, which he attributes to "weak market demand in Europe and significantly lower earnings from China." These issues, Blume says, have exposed "decades of structural problems" that the company can no longer ignore. In an effort to remain competitive, Volkswagen has already taken steps to reduce its costs, including asking its workers to take a 10% pay cut. Blume emphasised that the company's costs in Germany, in particular, must be "massively reduced," as the high cost of operating in the country has become a significant drag on Volkswagen's competitiveness. The company has set aside around 900 million euros (USD 975.06 million) in its annual report to execute these cost-cutting measures, underscoring the scale and importance of the restructuring effort. Blume's comments underscore the profound challenges Volkswagen faces as it seeks to address its long-standing structural issues and position itself for long-term success in an increasingly competitive global automotive market. The CEO made it clear that there is no flexibility on the goals for cost-cutting, only on how they are to be achieved. The planned factory closures, workforce reductions, and plant downsizings are likely to have a significant impact on Volkswagen's operations and the communities in which it operates. However, Blume maintains that these painful but necessary steps are the only way the company can save jobs and remain competitive.

VW announces cost-cutting measures to address decades of structural challenges

Thousands of workers across Germany have gone on nationwide strikes calling for higher wages as questions loom about the industrial future of the country. Major companies like Porsche, BMW and Mercedes have been hit by the strikes, which are mainly amongst unionised employees in the electrical engineering and metal industries.

That's just one example of alarming reports coming from Volkswagen, which may unveil plans to close three domestic plants for the first time in the 87-year history of the carmaker. The automotive giant is also looking at mass layoffs and could also seek a 10 per cent wage cut for their remaining employees. This isn't exactly a happy combination of events: the EU's largest economy is becoming an increasingly bad place to do business, adding to pressure on Chancellor Olaf Scholz's ruling coalition as it faces growing criticism from voters heading into next year's federal elections.

To deal with the escalating crisis, Scholz summoned together with business leaders, such as Volkswagen CEO Oliver Blume, to begin brainstorming how to bolster Germany's underlying industrial sector. In Berlin, held over three hours, Germany's finance chiefs held a meeting to discuss policies which could boost growth, help keep industrial jobs, and keep the country at the centre of global industrial production. The start of a wider initiative to deal with the issues lies with follow-up discussions planned for November 15, says government spokesperson Steffen Hebestreit.

But, many obstacles remain. A survey last week by the German Chamber of Commerce and Industry (DIHK) warns that Germany could once again enter a year of economic contraction in 2024 and there is no sign of recovery. DIHK Managing Director Martin Wansleben warned of a 'stubborn structural crisis' that is endangering Germany's economic stability and its role in Europe.

But a report from the VDA auto industry association outlines how Germany's auto sector could lose up to 186,000 jobs by 2035 with at least a quarter already gone. The VDA's findings suggest that rising electricity costs, higher taxes, and increasing bureaucratic hurdles are contributing to a decline in Germany's international competitiveness, raising alarms about the country's economic viability in a rapidly changing global landscape.

Thousands of workers across Germany have gone on nationwide strikes calling for higher wages as questions loom about the industrial future of the country. Major companies like Porsche, BMW and Mercedes have been hit by the strikes, which are mainly amongst unionised employees in the electrical engineering and metal industries.

Thousands of workers across Germany have gone on nationwide strikes calling for higher wages as questions loom about the industrial future of the country. Major companies like Porsche, BMW and Mercedes have been hit by the strikes, which are mainly amongst unionised employees in the electrical engineering and metal industries. That's just one example of alarming reports coming from Volkswagen, which may unveil plans to close three domestic plants for the first time in the 87-year history of the carmaker. The automotive giant is also looking at mass layoffs and could also seek a 10 per cent wage cut for their remaining employees. This isn't exactly a happy combination of events: the EU's largest economy is becoming an increasingly bad place to do business, adding to pressure on Chancellor Olaf Scholz's ruling coalition as it faces growing criticism from voters heading into next year's federal elections. To deal with the escalating crisis, Scholz summoned together with business leaders, such as Volkswagen CEO Oliver Blume, to begin brainstorming how to bolster Germany's underlying industrial sector. In Berlin, held over three hours, Germany's finance chiefs held a meeting to discuss policies which could boost growth, help keep industrial jobs, and keep the country at the centre of global industrial production. The start of a wider initiative to deal with the issues lies with follow-up discussions planned for November 15, says government spokesperson Steffen Hebestreit. But, many obstacles remain. A survey last week by the German Chamber of Commerce and Industry (DIHK) warns that Germany could once again enter a year of economic contraction in 2024 and there is no sign of recovery. DIHK Managing Director Martin Wansleben warned of a 'stubborn structural crisis' that is endangering Germany's economic stability and its role in Europe. But a report from the VDA auto industry association outlines how Germany's auto sector could lose up to 186,000 jobs by 2035 with at least a quarter already gone. The VDA's findings suggest that rising electricity costs, higher taxes, and increasing bureaucratic hurdles are contributing to a decline in Germany's international competitiveness, raising alarms about the country's economic viability in a rapidly changing global landscape.

Nationwide strikes erupt in Germany amid economic concerns

Volkswagen is contemplating significant layoffs and a 10 per cent pay cut for all employees as part of its strategy to restructure operations in Germany, according to the company’s works council.

This initiative includes the potential closures of three factories and downsizing at all other German plants, raising concerns about job security for tens of thousands of workers according to a detailed report by CNBC.

Daniela Cavallo, the head of the works council, reported that management recently unveiled a plan for a wage freeze in 2025 and 2026, leading to an estimated total pay reduction of approximately 18 per cent for employees over the next few years. Additionally, workers covered by specific collective wage agreements may lose bonuses and other benefits tied to employment milestones.

Cavallo emphasized that all Volkswagen plants in Germany would be affected, stating, “This means taking out even more products, volumes, shifts, and entire assembly lines far beyond what we have already done.” She highlighted the gravity of the situation, indicating that no facility is safe from the proposed changes.

The company’s plans have raised alarms as Volkswagen is also expected to outsource various departments to external firms or overseas locations. The works council reported that these discussions occurred separately from ongoing labour agreement negotiations, with a crucial meeting scheduled for Wednesday when Volkswagen will also release its latest quarterly earnings.

In a statement reflecting on the company's economic challenges, Volkswagen acknowledged the necessity of the restructuring to enhance competitiveness. Human resources chief Gunnar Kilian noted that without these measures, the company would struggle to make further investments.

CEO Thomas Schäfer pointed out that Volkswagen is not generating sufficient revenue from its car sales, coupled with rising energy, material, and labour costs, making German factories less competitive.

The automaker’s stock fell by 0.46 per cent on Monday, reflecting investor concerns amid broader challenges facing the automotive industry. Volkswagen has been grappling with the transition to electric vehicles and a softening global economy, leading to a reduction in its annual outlook for the second time in three months due to underperformance in its passenger car segment.

In recent weeks, Volkswagen warned of potential plant closures and announced plans to revoke several labour agreements, including those affecting specialized and temporary workers.

The company is also set to terminate an employment protection agreement established in 1994, a move met with strong resistance from the works council and the prominent German union IG Metall.

IG Metall's lead negotiator, Thorsten Gröger, criticised Volkswagen's proposals as a "stab in the heart of the hardworking VW workforce," warning of potential consequences if the company moves forward with its plans. As negotiations continue, the future of Volkswagen's workforce and operational strategy hangs in the balance.

Volkswagen is contemplating significant layoffs and a 10 per cent pay cut for all employees as part of its strategy to restructure operations in Germany, according to the company’s works council.

Volkswagen is contemplating significant layoffs and a 10 per cent pay cut for all employees as part of its strategy to restructure operations in Germany, according to the company’s works council. This initiative includes the potential closures of three factories and downsizing at all other German plants, raising concerns about job security for tens of thousands of workers according to a detailed report by CNBC. Daniela Cavallo, the head of the works council, reported that management recently unveiled a plan for a wage freeze in 2025 and 2026, leading to an estimated total pay reduction of approximately 18 per cent for employees over the next few years. Additionally, workers covered by specific collective wage agreements may lose bonuses and other benefits tied to employment milestones. Cavallo emphasized that all Volkswagen plants in Germany would be affected, stating, “This means taking out even more products, volumes, shifts, and entire assembly lines far beyond what we have already done.” She highlighted the gravity of the situation, indicating that no facility is safe from the proposed changes. The company’s plans have raised alarms as Volkswagen is also expected to outsource various departments to external firms or overseas locations. The works council reported that these discussions occurred separately from ongoing labour agreement negotiations, with a crucial meeting scheduled for Wednesday when Volkswagen will also release its latest quarterly earnings. In a statement reflecting on the company's economic challenges, Volkswagen acknowledged the necessity of the restructuring to enhance competitiveness. Human resources chief Gunnar Kilian noted that without these measures, the company would struggle to make further investments. CEO Thomas Schäfer pointed out that Volkswagen is not generating sufficient revenue from its car sales, coupled with rising energy, material, and labour costs, making German factories less competitive. The automaker’s stock fell by 0.46 per cent on Monday, reflecting investor concerns amid broader challenges facing the automotive industry. Volkswagen has been grappling with the transition to electric vehicles and a softening global economy, leading to a reduction in its annual outlook for the second time in three months due to underperformance in its passenger car segment. In recent weeks, Volkswagen warned of potential plant closures and announced plans to revoke several labour agreements, including those affecting specialized and temporary workers. The company is also set to terminate an employment protection agreement established in 1994, a move met with strong resistance from the works council and the prominent German union IG Metall. IG Metall's lead negotiator, Thorsten Gröger, criticised Volkswagen's proposals as a "stab in the heart of the hardworking VW workforce," warning of potential consequences if the company moves forward with its plans. As negotiations continue, the future of Volkswagen's workforce and operational strategy hangs in the balance.

Volkswagen plans layoffs and pay cuts amid plant closures

Germany's Volkswagen is on course to shut three factories and eye tens of thousands of layoffs as it digs deep into the recession over the next 20 years. Head of the company’s works council Daniela Cavallo told staff at the automaker’s largest plant in Wolfsburg on Monday.

Volkswagen, Europe's biggest carmaker, is in talks with unions on a far-reaching restructuring plan reducing costs and adjusting to a difficult economic picture. It would mark the first time German companies were considered when it came to plant closures, spurring fears about a blow to the nation’s industrial muscle.

This is not sabre rattling in the collective bargaining round, Cavallo said, stressing management’s intentions are serious. Specifically, she said restructuring plans could involve a large layoff; the workforce of 300,000 or so in Germany has not been mentioned yet on which plants are closing and who is being fired.

The comments indicate a growing divide between Volkswagen's labor force and management, as the auto maker suffers rising energy and labor costs, intense competition from Asian automakers, falling sales in Europe and China, and dealing with the transition to electric vehicles.

The developments add to pressure on the German government to act to boost the buoyant economy, which is on course for a second straight year of contraction. As federal elections approach next year and political challenges mount for Chancellor Olaf Scholz’s coalition, it is actively seeking measures to stimulate growth.

Cavallo also confirmed plans to cut staff of some 8,000 at the Volkswagen brand through potential layoffs and factory closures, and to cut salaries within the group by at least 10 percent and freeze pay in 2025 and 2026. This holistic approach to the issues confronting Volkswagen speaks to the magnitude of the difficulties the company faces in a fast changing automotive environment.

Germany's Volkswagen is on course to shut three factories and eye tens of thousands of layoffs as it digs deep into the recession over the next 20 years. Head of the company’s works council Daniela Cavallo told staff at the automaker’s largest plant in Wolfsburg on Monday.

Germany's Volkswagen is on course to shut three factories and eye tens of thousands of layoffs as it digs deep into the recession over the next 20 years. Head of the company’s works council Daniela Cavallo told staff at the automaker’s largest plant in Wolfsburg on Monday. Volkswagen, Europe's biggest carmaker, is in talks with unions on a far-reaching restructuring plan reducing costs and adjusting to a difficult economic picture. It would mark the first time German companies were considered when it came to plant closures, spurring fears about a blow to the nation’s industrial muscle. This is not sabre rattling in the collective bargaining round, Cavallo said, stressing management’s intentions are serious. Specifically, she said restructuring plans could involve a large layoff; the workforce of 300,000 or so in Germany has not been mentioned yet on which plants are closing and who is being fired. The comments indicate a growing divide between Volkswagen's labor force and management, as the auto maker suffers rising energy and labor costs, intense competition from Asian automakers, falling sales in Europe and China, and dealing with the transition to electric vehicles. The developments add to pressure on the German government to act to boost the buoyant economy, which is on course for a second straight year of contraction. As federal elections approach next year and political challenges mount for Chancellor Olaf Scholz’s coalition, it is actively seeking measures to stimulate growth. Cavallo also confirmed plans to cut staff of some 8,000 at the Volkswagen brand through potential layoffs and factory closures, and to cut salaries within the group by at least 10 percent and freeze pay in 2025 and 2026. This holistic approach to the issues confronting Volkswagen speaks to the magnitude of the difficulties the company faces in a fast changing automotive environment.

Volkswagen plans major restructuring: mass layoffs and factory closures loom

Volkswagen plans to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul, the carmaker's works council head said.

Europe's biggest carmaker has been negotiating for weeks with unions over its plans to revamp its business and lower costs, including considering plant closures in Germany for the first time.

"Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round," Daniela Cavallo, Volkswagen's works council head, told several hundreds of employees at the carmaker's biggest plant, in Wolfsburg, on Monday.

"This is the plan of Germany's largest industrial group to start the sell-off in its home country of Germany," Cavallo added, not specifying which plants would be affected or how many of Volkswagen Group's roughly 300,000 staff in Germany could be laid off.

The comments mark a major escalation of a conflict between Volkswagen's workers and the group's management, which is under severe pressure to cut costs and remain competitive in light of weaker demand in China and Europe.

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They also heap further pressure on the German government to act on persistent weakness of its economy, which faces a second successive year of contraction and has Chancellor Olaf Scholz's coalition searching for ways to spur growth. Scholz trails in the polls with federal elections due next year.

Cavallo said Berlin needed to urgently come up with a masterplan for German industry to ensure it does not "go down the drain".

A government spokesperson said Berlin was aware of Volkswagen's difficulties and remained in close dialogue with the company and worker representatives.

"The chancellor's position on this is clear, however, namely that possible wrong management decisions from the past must not be to the detriment of employees. The aim now is to maintain and secure jobs," the spokesperson told a regular briefing.

Cavallo said there was agreement between workers and the board regarding the nature of the problems the carmaker, and many of its European peers, faces, ranging from a slower-than-expected electric transition to fierce competition from Chinese carmakers entering Europe.

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"We are not far apart when it comes to analysing the problems. But we are miles apart on the answers to them," he said.

Monday's announcement follows more bad news for German carmakers last week, with Mercedes-Benz vowing to step up cost-cutting measures after its earnings shrank.

Porsche, which is majority-owned by Volkswagen, meanwhile said it was paring back its dealership network in China to reflect weak demand in the world's largest auto market, also flagging billions of euros in cost cuts.

German carmakers also fear being caught in the crosshairs of a trade war between the European Union and China, with hefty EU tariffs on Chinese electric vehicles set to come into force this week.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for&nbsp;WION&nbsp;audience.

Volkswagen plans to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul, the carmaker's works council head said.

Volkswagen plans to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul, the carmaker's works council head said. Europe's biggest carmaker has been negotiating for weeks with unions over its plans to revamp its business and lower costs, including considering plant closures in Germany for the first time. "Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round," Daniela Cavallo, Volkswagen's works council head, told several hundreds of employees at the carmaker's biggest plant, in Wolfsburg, on Monday. "This is the plan of Germany's largest industrial group to start the sell-off in its home country of Germany," Cavallo added, not specifying which plants would be affected or how many of Volkswagen Group's roughly 300,000 staff in Germany could be laid off. The comments mark a major escalation of a conflict between Volkswagen's workers and the group's management, which is under severe pressure to cut costs and remain competitive in light of weaker demand in China and Europe. Also Read | PM Modi inaugurates India's first C-295 aircraft manufacturing facility They also heap further pressure on the German government to act on persistent weakness of its economy, which faces a second successive year of contraction and has Chancellor Olaf Scholz's coalition searching for ways to spur growth. Scholz trails in the polls with federal elections due next year. Cavallo said Berlin needed to urgently come up with a masterplan for German industry to ensure it does not "go down the drain". A government spokesperson said Berlin was aware of Volkswagen's difficulties and remained in close dialogue with the company and worker representatives. "The chancellor's position on this is clear, however, namely that possible wrong management decisions from the past must not be to the detriment of employees. The aim now is to maintain and secure jobs," the spokesperson told a regular briefing. Cavallo said there was agreement between workers and the board regarding the nature of the problems the carmaker, and many of its European peers, faces, ranging from a slower-than-expected electric transition to fierce competition from Chinese carmakers entering Europe. Also Read | PL: Man Utd sack Erik ten Hag as manager after dismal start of season "We are not far apart when it comes to analysing the problems. But we are miles apart on the answers to them," he said. Monday's announcement follows more bad news for German carmakers last week, with Mercedes-Benz vowing to step up cost-cutting measures after its earnings shrank. Porsche, which is majority-owned by Volkswagen, meanwhile said it was paring back its dealership network in China to reflect weak demand in the world's largest auto market, also flagging billions of euros in cost cuts. German carmakers also fear being caught in the crosshairs of a trade war between the European Union and China, with hefty EU tariffs on Chinese electric vehicles set to come into force this week. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Volkswagen to shut three German plants, plans mass layoff

Volkswagen's Scout Motors revealed Thursday that its upcoming SUV and pickup truck lineup will offer both pure electric and extended-range variants, marking a pragmatic approach to American consumer preferences in the evolving electric vehicle market.

The announcement, made during the unveiling of Scout's concept vehicles, represents a strategic shift from VW's May 2022 vision of an EV-only standalone brand. The decision comes in response to American drivers' concerns about charging infrastructure and range anxiety, according to company officials.

Scout Motors CEO Scott Keogh emphasised the flexibility of this approach, stating, "It makes the platform future proof." The extended-range versions will incorporate a small gasoline engine specifically designed to recharge the high-voltage battery without direct mechanical connection to the wheels, while pure electric variants will deliver up to 350 miles of range. The hybrid models are expected to achieve an impressive 500-mile range, positioning Scout competitively in the market.

The German automotive giant is backing this initiative with a substantial USD 2 billion investment in a South Carolina manufacturing facility, scheduled to begin production in 2027. The plant's annual production capacity of 200,000 vehicles will be allocated between SUVs (65-70%) and pickups (30-35%), reflecting anticipated market demand.

In a departure from traditional automotive retail models and following Tesla's lead, Scout Motors will implement a direct-to-consumer sales and service approach. The company plans to establish approximately three dozen U.S. retail centres at launch, eventually expanding to 100 locations. This strategy includes a commitment to transparent pricing and streamlined purchasing processes that can be completed "in minutes."

The new Scout lineup, featuring the Traveler SUV and Terra pickup, will enter the market with starting prices under USD 60,000, positioning them competitively against established players like Rivian, Tesla, General Motors, and Ford. Keogh described the SUV's design philosophy as a fusion of iconic off-road vehicles, characterising it as "kind of a Defender meets a Land Cruiser meets a Bronco."

Keogh highlighted Scout's distinctive approach to vehicle design, emphasising traditional mechanical interfaces over the futuristic touchscreen-dominated controls common in many modern EVs. "They want real switches, they want a door handle they can move," Keogh explained, referring to American consumer preferences. "It has that love and nostalgia from the '60s and '70s with the high-tech stuff."

This launch represents Volkswagen's first venture into the U.S. pickup market since the early 1980s. The Scout brand, originally part of International Harvester, holds historical significance as a pioneer of the SUV segment, alongside vehicles like the Travelall that preceded popular models such as the Ford Bronco and Chevrolet Suburban.

The announcement reflects a growing trend in the automotive industry of manufacturers adapting their electrification strategies to meet market realities while maintaining commitment to sustainable transportation. Scout's hybrid approach could serve as a blueprint for other manufacturers navigating the transition to electric vehicles while addressing consumer concerns about range and charging infrastructure.

Volkswagen's Scout Motors revealed Thursday that its upcoming SUV and pickup truck lineup will offer both pure electric and extended-range variants, marking a pragmatic approach to American consumer preferences in the evolving electric vehicle market.

Volkswagen's Scout Motors revealed Thursday that its upcoming SUV and pickup truck lineup will offer both pure electric and extended-range variants, marking a pragmatic approach to American consumer preferences in the evolving electric vehicle market. The announcement, made during the unveiling of Scout's concept vehicles, represents a strategic shift from VW's May 2022 vision of an EV-only standalone brand. The decision comes in response to American drivers' concerns about charging infrastructure and range anxiety, according to company officials. Scout Motors CEO Scott Keogh emphasised the flexibility of this approach, stating, "It makes the platform future proof." The extended-range versions will incorporate a small gasoline engine specifically designed to recharge the high-voltage battery without direct mechanical connection to the wheels, while pure electric variants will deliver up to 350 miles of range. The hybrid models are expected to achieve an impressive 500-mile range, positioning Scout competitively in the market. The German automotive giant is backing this initiative with a substantial USD 2 billion investment in a South Carolina manufacturing facility, scheduled to begin production in 2027. The plant's annual production capacity of 200,000 vehicles will be allocated between SUVs (65-70%) and pickups (30-35%), reflecting anticipated market demand. In a departure from traditional automotive retail models and following Tesla's lead, Scout Motors will implement a direct-to-consumer sales and service approach. The company plans to establish approximately three dozen U.S. retail centres at launch, eventually expanding to 100 locations. This strategy includes a commitment to transparent pricing and streamlined purchasing processes that can be completed "in minutes." The new Scout lineup, featuring the Traveler SUV and Terra pickup, will enter the market with starting prices under USD 60,000, positioning them competitively against established players like Rivian, Tesla, General Motors, and Ford. Keogh described the SUV's design philosophy as a fusion of iconic off-road vehicles, characterising it as "kind of a Defender meets a Land Cruiser meets a Bronco." Keogh highlighted Scout's distinctive approach to vehicle design, emphasising traditional mechanical interfaces over the futuristic touchscreen-dominated controls common in many modern EVs. "They want real switches, they want a door handle they can move," Keogh explained, referring to American consumer preferences. "It has that love and nostalgia from the '60s and '70s with the high-tech stuff." This launch represents Volkswagen's first venture into the U.S. pickup market since the early 1980s. The Scout brand, originally part of International Harvester, holds historical significance as a pioneer of the SUV segment, alongside vehicles like the Travelall that preceded popular models such as the Ford Bronco and Chevrolet Suburban. The announcement reflects a growing trend in the automotive industry of manufacturers adapting their electrification strategies to meet market realities while maintaining commitment to sustainable transportation. Scout's hybrid approach could serve as a blueprint for other manufacturers navigating the transition to electric vehicles while addressing consumer concerns about range and charging infrastructure.

Volkswagen's electric SUVs and trucks to feature hybrid range-extension option

Shares in Traton, Volkswagen's truck division, jumped as much as 10.4 percent on Tuesday after Volkswagen trumpeted its third-quarter results, which beat forecasts, riding high on sales from its US brand, International, and Swedish unit Scania. By 0728 GMT, Traton's stock rose 4% to a high not seen in three months. Meanwhile, shares of peers Daimler Truck and Volvo also climbed 1.7 percent and 1 percent respectively.

Traton, which will keep the name Truckizon as part of the new business, also announced in its July-September report a 19 percent increase in operating profit to EURO 1.14 billion (USD 1.23 billion). Analysts had projected a 8.7% return on sales and the actual return on sales was 9.6%. Traton's performance has been impressive but it decided to stick with its annual guidance, which has led to some skepticism from investors.

"A fly in the ointment" was a lack of an upgraded forecast and the absence of quarterly order intake figures, a local trader noted, cautioning that this could dampen positive reactions to the results.&nbsp;

However, Traton's performance is also timely given that its parent company Volkswagen is battling plummeting sales in its core models and growing Chinese competition. Discussions within Volkswagen over plant closures in Germany have been sparked by the challenges.

Traton's robust quarterly results, which come as its parent company faces broader pressures in the truck industry, signal resilience in the turbulent world of commercial vehicle. Looking ahead, Traton will continue to attract the focus of investors as they look to monitor ongoing developments relating to Traton's order intake and guidance adjustment.

Shares in Traton, Volkswagen's truck division, jumped as much as 10.4 percent on Tuesday after Volkswagen trumpeted its third-quarter results, which beat forecasts, riding high on sales from its US brand, International, and Swedish unit Scania.

Shares in Traton, Volkswagen's truck division, jumped as much as 10.4 percent on Tuesday after Volkswagen trumpeted its third-quarter results, which beat forecasts, riding high on sales from its US brand, International, and Swedish unit Scania. By 0728 GMT, Traton's stock rose 4% to a high not seen in three months. Meanwhile, shares of peers Daimler Truck and Volvo also climbed 1.7 percent and 1 percent respectively. Traton, which will keep the name Truckizon as part of the new business, also announced in its July-September report a 19 percent increase in operating profit to EURO 1.14 billion (USD 1.23 billion). Analysts had projected a 8.7% return on sales and the actual return on sales was 9.6%. Traton's performance has been impressive but it decided to stick with its annual guidance, which has led to some skepticism from investors. "A fly in the ointment" was a lack of an upgraded forecast and the absence of quarterly order intake figures, a local trader noted, cautioning that this could dampen positive reactions to the results. However, Traton's performance is also timely given that its parent company Volkswagen is battling plummeting sales in its core models and growing Chinese competition. Discussions within Volkswagen over plant closures in Germany have been sparked by the challenges. Traton's robust quarterly results, which come as its parent company faces broader pressures in the truck industry, signal resilience in the turbulent world of commercial vehicle. Looking ahead, Traton will continue to attract the focus of investors as they look to monitor ongoing developments relating to Traton's order intake and guidance adjustment.

Volkswagen's truck division Traton's shares surge following strong Q3 results

Volkswagen Financial Services (UK) Limited was fined 5.4 million pounds on Wednesday by the UK’s Financial Conduct Authority (FCA) for unfairly treating financially vulnerable customers between 2017 and 2023. The company will, it announced on Monday, also repay around 21.5 million pounds in redress to around 110,000 affected customers.

The FCA also found that Volkswagen Financial Services took part in practices made worse by the challenges faced by those who are financially stressed. In particular, the company withdrew vehicles from vulnerable customers without looking for alternatives. These failings were further fuel by poorly formatted and automated communications that did not address customers' needs effectively, the regulator added.

'Twisting Britain's arms, so as to bring home an acceptable financial undertaking, Volkswagen Finance made tough personal situations worse by failing to take into account what those in difficulty might need,' the FCA said. 'It is right that it compensates those who went through suffering.'

Volkswagen Financial Services issued an email comment in response to the ruling. The company said the remediation efforts, which include goodwill payments to customers who were tainted, will soon be concluded. They also apologised for any damage caused during that time.

This is in line with a broader trend from the FCA which has, among others, targeted major banks such as HSBC, Barclays, Lloyds and TSB for failing to treat customers fairly in tough economic times. Emphasising that it is crucial to ensure that companies carry out their responsibility of helping vulnerable consumers during times of difficulty, the regulator has stated.

While addressing these issues, the FCA's actions act as a warning to line up fair treatment and transparency in their dealings with customers as financial institutions.

Volkswagen Financial Services (UK) Limited was fined 5.4 million pounds on Wednesday by the UK’s Financial Conduct Authority (FCA) for unfairly treating financially vulnerable customers between 2017 and 2023.

Volkswagen Financial Services (UK) Limited was fined 5.4 million pounds on Wednesday by the UK’s Financial Conduct Authority (FCA) for unfairly treating financially vulnerable customers between 2017 and 2023. The company will, it announced on Monday, also repay around 21.5 million pounds in redress to around 110,000 affected customers. The FCA also found that Volkswagen Financial Services took part in practices made worse by the challenges faced by those who are financially stressed. In particular, the company withdrew vehicles from vulnerable customers without looking for alternatives. These failings were further fuel by poorly formatted and automated communications that did not address customers' needs effectively, the regulator added. 'Twisting Britain's arms, so as to bring home an acceptable financial undertaking, Volkswagen Finance made tough personal situations worse by failing to take into account what those in difficulty might need,' the FCA said. 'It is right that it compensates those who went through suffering.' Volkswagen Financial Services issued an email comment in response to the ruling. The company said the remediation efforts, which include goodwill payments to customers who were tainted, will soon be concluded. They also apologised for any damage caused during that time. This is in line with a broader trend from the FCA which has, among others, targeted major banks such as HSBC, Barclays, Lloyds and TSB for failing to treat customers fairly in tough economic times. Emphasising that it is crucial to ensure that companies carry out their responsibility of helping vulnerable consumers during times of difficulty, the regulator has stated. While addressing these issues, the FCA's actions act as a warning to line up fair treatment and transparency in their dealings with customers as financial institutions.

UK watchdog fines Volkswagen unit for unfair customer treatment

Volkswagen (VW) is at the negotiating table with labor unions as it works on a new corporate strategy. It has become less 'abysmal' and more 'controversial,' with tension between management and workers who say the company has not clearly outlined what it will be in the future.&nbsp;

The weekly talks are 'serious and critical' but 'still full of data and factual analysis, not negotiations', the works council chief Daniela Cavallo told an interview published in VW's works council newspaper. But she noted that 'we are not yet in a mode that you could say is negotiation', urging both sides to first understand their respective positions in the matter.

Volkswagen confirmed the confidential nature of the discussions, but said that the company needs to reduce its costs significantly in order to continue to be competitive. A comprehensive strategy is being formulated, which is expected to be presented internally by the end of the year, they added. It is planned that this strategy will determine the problems that use artificial intelligence, product development, and qualifications of the workforce, which in this way will address the main ones.

Volkswagen management has held weekly meetings with worker representatives from its German plants since early October reviewing operational data and identifying cost savings. With formal talks set for October 30, negotiations on wage increases are being separated.

Unions have demanded that savings, production plans, and wage bargaining must be considered as a package, unwilling to bargain away a single point before the others have been addressed. Deputy works council chief Juergen Mahnkopf warned that management risked paralysis at the company if it closed plants unilaterally, adding that 'massive resistance on all fronts' would be met.

Tensions are running high at VW as the prospect of factory closures looms, marking a potential first for the company in Germany. With worker representatives holding significant sway on the supervisory board, the outcome of these negotiations will be crucial in shaping Volkswagen’s strategic direction and maintaining labor relations.

Volkswagen (VW) is at the negotiating table with labor unions as it works on a new corporate strategy. It has become less 'abysmal' and more 'controversial,' with tension between management and workers who say the company has not clearly outlined what it will be in the future.

Volkswagen (VW) is at the negotiating table with labor unions as it works on a new corporate strategy. It has become less 'abysmal' and more 'controversial,' with tension between management and workers who say the company has not clearly outlined what it will be in the future. The weekly talks are 'serious and critical' but 'still full of data and factual analysis, not negotiations', the works council chief Daniela Cavallo told an interview published in VW's works council newspaper. But she noted that 'we are not yet in a mode that you could say is negotiation', urging both sides to first understand their respective positions in the matter. Volkswagen confirmed the confidential nature of the discussions, but said that the company needs to reduce its costs significantly in order to continue to be competitive. A comprehensive strategy is being formulated, which is expected to be presented internally by the end of the year, they added. It is planned that this strategy will determine the problems that use artificial intelligence, product development, and qualifications of the workforce, which in this way will address the main ones. Volkswagen management has held weekly meetings with worker representatives from its German plants since early October reviewing operational data and identifying cost savings. With formal talks set for October 30, negotiations on wage increases are being separated. Unions have demanded that savings, production plans, and wage bargaining must be considered as a package, unwilling to bargain away a single point before the others have been addressed. Deputy works council chief Juergen Mahnkopf warned that management risked paralysis at the company if it closed plants unilaterally, adding that 'massive resistance on all fronts' would be met. Tensions are running high at VW as the prospect of factory closures looms, marking a potential first for the company in Germany. With worker representatives holding significant sway on the supervisory board, the outcome of these negotiations will be crucial in shaping Volkswagen’s strategic direction and maintaining labor relations.

Volkswagen and unions engage in fact-finding talks amid strategic overhaul

Volkswagen's brand chief, Thomas Schaefer, recently announced that it plans to roll out by 2027 at least eight new electric car models to reclaim lost market share. Schaefer spoke to a magazine about the company's need to produce these vehicles profitably, while at the same time remaining affordable to consumers. This is what our ambition is — to get electric vehicles on the roads where customers will accept that price, Schaefer said, touting the company's focus on pricing in the burgeoning EV market.&nbsp;

The ID.2, a compact electric car, has been given priority for development among the coming models. Volkswagen, for its part, plans to speed up its production timeline for the ID.2 from the standard 50 months to just 36 months. This accelerated timeline was necessary for the company to stay ahead and adapt to the fast paced changing market landscape.

His comments come as automakers worldwide shift toward electrification to meet environmental regulations and consumer demand. Having had its fair share of issues up until now, Volkswagen is positioning itself to use its brand recognition and vast engineering capabilities to weather this shift.

These new models are part of a wider plan for Volkswagen to strengthen its position in the electric vehicle market, which is booming and crowded. As the market is moving to affordable and sustainable transportation means, Volkswagen's try is to be aligned with this trend, while keeping the business relevant.

And Volkswagen hopes that the launch of these eight new models will be at the heart of its strategy to regain its competitiveness and consolidate its position in the global automotive market. As the automotive industry steers towards electric mobility, Volkswagen's proactive stance could be a great example of how to smoothly transition in the coming years.

Volkswagen's brand chief, Thomas Schaefer, recently announced that it plans to roll out by 2027 at least eight new electric car models to reclaim lost market share.

Volkswagen's brand chief, Thomas Schaefer, recently announced that it plans to roll out by 2027 at least eight new electric car models to reclaim lost market share. Schaefer spoke to a magazine about the company's need to produce these vehicles profitably, while at the same time remaining affordable to consumers. This is what our ambition is — to get electric vehicles on the roads where customers will accept that price, Schaefer said, touting the company's focus on pricing in the burgeoning EV market. The ID.2, a compact electric car, has been given priority for development among the coming models. Volkswagen, for its part, plans to speed up its production timeline for the ID.2 from the standard 50 months to just 36 months. This accelerated timeline was necessary for the company to stay ahead and adapt to the fast paced changing market landscape. His comments come as automakers worldwide shift toward electrification to meet environmental regulations and consumer demand. Having had its fair share of issues up until now, Volkswagen is positioning itself to use its brand recognition and vast engineering capabilities to weather this shift. These new models are part of a wider plan for Volkswagen to strengthen its position in the electric vehicle market, which is booming and crowded. As the market is moving to affordable and sustainable transportation means, Volkswagen's try is to be aligned with this trend, while keeping the business relevant. And Volkswagen hopes that the launch of these eight new models will be at the heart of its strategy to regain its competitiveness and consolidate its position in the global automotive market. As the automotive industry steers towards electric mobility, Volkswagen's proactive stance could be a great example of how to smoothly transition in the coming years.

Volkswagen plans to launch 8 affordable electric models by 2027

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