Volkswagen AG positions itself competitively for the future

Hannover. Following intensive negotiations between Volkswagen AG, IG Metall and the Works Council, a joint agreement entitled ‘Zukunft Volkswagen’ [Future Volkswagen] has been concluded. The company and the Works Council are thereby jointly positioning Volkswagen AG for sustainable success. To this end, the company is realigning production capacities at Volkswagen AG's German locations. To this end, the company is realigning production capacities at Volkswagen AG's German locations. It is creating the conditions for a reduction in labour costs of €1.5 billion per year at the collectively agreed level with an agreement on the company wage settlement until 2030. The short-term reduction in labour costs and the agreed structural measures through capacity reduction and a decrease in development costs will lead to cost savings of over €4 billion per year in the medium term. In addition, a reduction in capacity of 734,000 units across the German plants is planned. This will enable Volkswagen AG to lay the foundation for important investments in future products through to 2030. The structural realignment of the company at an operational and collective level will create the conditions for achieving the return-on-sales target for the Volkswagen Passenger Cars brand in the medium term.

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