VW to cut 23,000 jobs in Germany in shift towards e-mobility

Volkswagen is cutting up to 23,000 jobs in conventional areas in Germany in a bid to recover its financial stability and steer its production towards e-mobility, Germany’s largest carmaker announced at a press conference. VW’s “Pact for the Future” is supposed to “lay the foundations for a transformation from a car manufacturer to a successful mobility services provider in times of digitalisation and increasing e-mobility”, it said. VW, whose finances were heavily hit by compensation claims following the emissions fraud scandal, expects a positive impact on the global bottom line of about 3.7 billion euros by 2020. The company plans to invest 3.5 billion euros in Germany in the coming years to restructure the company. Contrary to earlier news reports, VW will build a “pilot plant” for battery cells and cell modules in Germany, not just an assembling factory, the company said.

Read the company’s press release in English here.

For more information on the impact of the emissions scandal on VW’s strategy, read the CLEW factsheet Dieselgate forces VW to embrace green mobility.