Breaking News: Volkswagen to End Job Security Scheme Amid Pressure from Asian Competitors
Volkswagen announced its plans to terminate its job security programme, in place since 1994, which prevents job cuts until 2029, as the company faces increasing pressure from Asian competitors. The move could potentially impact several German factories, with analysts speculating that VW sites in Osnabrueck and Dresden may be at risk of closure.
Analysis:
1. Brunswick: Volkswagen's oldest plant in a city of 250,000 people, employs 7,400 workers producing components and batteries for electric vehicles.
2. Emden: Founded in 1964, this plant in a city of 50,000 people manufactures models like the VW Passat and electric ID.4, with over 8,000 employees producing 180,000 vehicles annually.
3. Hanover: With a workforce of 14,000, this factory in Lower Saxony produces the VW 'Bulli' and T-Series vehicles, as well as various parts.
4. Kassel: VW's largest components plant worldwide, employing 16,500 people in northern Hesse, producing millions of transmissions used in various VW brands.
5. Salzgitter: Started in 1970, this factory employs 7,500 workers, manufacturing engine variants and components for electric vehicles, with plans for a major investment in battery production.
6. Wolfsburg: Volkswagen's headquarters and main production site, employing around 70,000 people, producing nearly half a million vehicles annually, including the VW Golf.
7. Dresden: Specializing in electric vehicles, this plant employs 340 people and manufactures models like the ID.3.
8. Osnabrueck: Known for small-series production, this factory employs 2,300 workers producing vehicles and body parts for various brands, with potential production issues due to upcoming changes in production plans.
