Volkswagen gained’t have to shut any of its factories in Germany in any case. The automaker has reached an settlement with its IG Metall union that may maintain all 10 of the automaker’s crops open in its residence nation. The automaker can also be guaranteeing its staff jobs till the tip of 2030.

In response to The New York Occasions, the union agreed with the automaker to drag its request for a wage improve. It gained’t ask once more till 2031. The brand new settlement arrives after a months-long battle about the way forward for the model’s operations in Germany within the face of dwindling gross sales and demand.

“No website can be closed, nobody can be made redundant and our firm wage settlement can be secured for the long run,” Daniela Cavallo, the pinnacle of the works council at Volkswagen, stated in an announcement.

Nevertheless, Volkswagen has additionally introduced it desires to chop 35,000 jobs, in response to Autocar. It presently has about 120,000 staff in Germany, and it will work to scale back its headcount over the subsequent 5 years with early retirement packages and different voluntary measures because it seems to be to scale back prices. Although VW will maintain all its factories open, it’s going to repurpose two of them.

Final month, Volkswagen CEO Thomas Schaefer stated that the model would wish to shut factories and pressure layoffs. Even the corporate’s works council had conceded in November that wage cuts is perhaps wanted. Rumors urged VW’s low-volume Dresden facility, the place it builds ID.3s, and its Osnabruck plant, the place it builds the Porsche 718, would possibly even be on the chopping block. However that doesn’t look like the case anymore, regardless of the market’s waning demand for EVs and the tip of 718 manufacturing. 

Volkwagen has needed to make some powerful choices about its enterprise this yr, together with deciding to promote considered one of its factories in China. The corporate cited “financial causes” for the transfer, despite the fact that it’s promising to introduce 18 new fashions within the Chinese language market by 2030.