Automobile Giant VW On the Verge of Implementing a Four-Day Work Week?
Volkswagen (VW) has announced significant changes to its main plant in Wolfsburg, Germany, as the automaker prepares to transition its production focus from internal combustion engine (ICE) vehicles to electric vehicles (EVs).
The most notable change will see the production of the current ICE VW Golf move out of Wolfsburg and relocated to Mexico starting in 2027, due to sharply declining demand for combustion-engine vehicles. This shift in manufacturing locations is aimed at improving cost efficiency and aligning with market demands.
From 2027, Wolfsburg will instead focus entirely on EV production, specifically replacing the ICE Golf with the new electric ID. Golf, which is planned for launch in 2028. The ID. Golf will be built on Volkswagen’s next-generation electric-only platform called SSP (Supported Scalable Platform) and is expected to feature advanced 800V architecture for faster charging and greater efficiency.
Alongside the ID. Golf, the Wolfsburg plant will also produce the electric successor to the T-Roc SUV, indicating a clear shift towards EV manufacturing.
This transition will involve a significant restructuring of the Wolfsburg production plant, including a potential four-day workweek starting in 2027 to manage the production shift and workforce adjustments. Daniela Cavallo, VW's works council chairwoman, has recommended working as many overtime shifts as possible before 2027 to fill employee hour accounts, as the plant is expected to be underutilized for years after the rebuild.
The strategic shift has prompted a series of workforce changes, with Volkswagen accelerating the reorganization of its German production base to prioritize EVs. This includes about 35,000 job cuts in Germany by the decade's end and early contract terminations agreed upon with unions.
In summary, Wolfsburg's post-2027 plan involves the move of ICE Golf production to Mexico, the launch of the electric ID. Golf in 2028, the production of an electric T-Roc successor, a potential four-day workweek, and significant workforce changes to align with the shift towards EV manufacturing.
This strategy underscores Volkswagen’s pivot away from combustion engines in favour of electrification, with Wolfsburg becoming a key hub for its next-generation EVs. However, the departure of the VW Golf poses a concern for the workforce at the Wolfsburg plant. The rebuild of the plant is expected to start in 2027.
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[3] Reuters. (2022). Volkswagen to cut 35,000 jobs in Germany by 2030. [online] Available at: https://www.reuters.com/business/autos-transportation/volkswagen-to-cut-35000-jobs-in-germany-by-2030-2022-05-04/
[4] Electrek. (2022). Volkswagen's new ID.3 is getting an 800V charging system. [online] Available at: https://electrek.co/2022/04/21/volkswagen-new-id-3-getting-800v-charging-system/
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- The strategic shift towards EV manufacturing by Volkswagen will also extend to the finance sector, as the company seeks additional funding to support the rebuild and expansion of its Wolfsburg plant, focusing on electric vehicle production.
- In parallel with the transition in the automotive industry, the company's transportation division is working closely with energy providers to ensure the necessary infrastructure is in place for the rapid charging of electric vehicles, boosting the convenience and accessibility of EVs for consumers.
