Could it be that Volkswagen is considering a shift to a four-day workweek?
Volkswagen's (VW) main plant in Wolfsburg, Germany, is undergoing a significant transformation as it prepares to bid farewell to the production of the iconic Golf model in two years. The plant, known for its long-standing tradition of manufacturing combustion-engine vehicles, is set to become a dedicated electric vehicle (EV) production site, focusing on models such as the ID.3 and Cupra Born from 2027 [1][3].
This shift in production strategy is part of a broader restructuring effort aimed at aligning with the decreasing demand for traditional vehicles and the growing focus on EVs. The Wolfsburg plant will be one of the key locations in VW's plan to reduce German production capacity by 734,000 units overall [2][3][4].
A significant change in the plant's operations will be the implementation of a four-day workweek starting in 2027. This adjustment is expected to better match staffing with EV production needs and reduce costs without shutting down the facility [1][3].
VW's works council chairwoman, Daniela Cavallo, addressed the plant's transformation at a works meeting on June 3rd. Cavallo expects the plant to be underutilized from 2027 due to restructuring, and she suggests that as many overtime shifts as possible should be worked now to fill employee hour accounts for benefits from 2027 [3].
The restructuring is intended to save up to €4 billion annually by 2025, increasing to €15 billion by 2030. These savings will be used to fund EV research, development, and battery investments [3].
To accommodate the shift to EV production, two of the four assembly lines in the VW main plant will be converted to the new group-wide electric platform (SSP) [3]. The SSP platform, considered the backbone of VW's E-offensive, will also be used to produce the electric models ID.3 and Cupra Born alongside the Tiguan and the Tayron from 2027 [3].
The departure of the VW Golf is causing anxiety among employees, but Cavallo's expectations about the plant's underutilization may not be well-received by them. From 2027, the Golf will no longer be built in Wolfsburg but will be produced in Mexico [3].
The changes at the VW plant in Wolfsburg are part of the automaker's broader strategy to transition to a fully electric future, aligning with the global shift towards sustainable mobility. This transformation is expected to position Volkswagen as a leader in the EV market and ensure its financial sustainability by 2029 [1][3][4].
[1] https://www.automotiveworld.com/news-releases/volkswagen-group-to-slash-german-production-capacity-by-734000-units-by-2030/ [2] https://www.reuters.com/business/autos-transportation/volkswagen-to-cut-german-production-capacity-by-734000-units-by-2030-2022-05-27/ [3] https://www.reuters.com/business/autos-transportation/volkswagen-to-consider-four-day-week-at-german-main-plant-2022-06-03/ [4] https://www.autocar.co.uk/business/industry/volkswagen-to-cut-german-production-capacity-by-734000-units-by-2030
The transformation of Volkswagen's main plant in Wolfsburg, initially known for manufacturing combustion-engine vehicles, is extending beyond the automotive industry to include finance, with the restructuring aimed at saving up to €15 billion by 2030 to fund EV research and development. This shift in the industry's finance sector is aspired to position Volkswagen as a leader in the electric vehicle market and ensure its financial sustainability by 2029.
With the move towards electric vehicles, the Wolfsburg plant will not only be a crucial location for the production of electric models like the ID.3 and Cupra Born but also a significant player in the transportation sector, particularly in the race towards sustainable mobility. This transition is expected to reduce German production capacity by 734,000 units overall.
