Volkswagen said the partnership would save it 15 billion euros a year in the medium term and would not have a material impact on its outlook for 2024.
There was no immediate closure, but the company said it was considering options for the Dresden factory and the reuse of the Osnabrück site, including looking for a buyer. Some production will be moved to Mexico.
“The factory will not be closed, there will be no layoffs for operational reasons and our wage agreement will be secured for the long term,” said Daniela Cavallo, president of the works council.
However, Süddeutsche Zeitung newspaper reported on Sunday that around 4,000 Volkswagen managers would face a reduction in income under the deal.
From 2025 and 2026, their salaries will be reduced by 10% compared to current levels. The reductions will gradually decrease over the next few years, and this adjustment will continue until 2030.
Volkswagen has been in talks with unions since September about steps needed to deal with competition from cheaper Chinese rivals, weak demand in Europe and slower-than-expected growth in electric vehicle sales. continues.
In late October, the company first announced its intention to close at least three factories in Germany and downsize all remaining factories.
Tommaso Lecca contributed reporting.
