Volkswagen Group plans to cut costs and adjust production capacity

Volkswagen Group has reached an agreement with the union on a plan to significantly cut costs, announcing a comprehensive reform of its German operations, including layoffs and capacity cuts. It is expected to lay off more than 35,000 employees, about 25% of the company's total workforce. By the end of 2025, the Dresden plant will stop producing cars. At the same time, production at the Wolfsburg plant will be reduced from four assembly lines to two, and production of the Golf model will also be transferred from the Wolfsburg plant to the plant in Puebla, Mexico starting in 2027.