Nearly 9,300 Volkswagen Employees Agree to Early Retirement Plan

Volkswagen said in a statement today that nearly 9,300 staff members have agreed to early retirement buyouts, which will help the automaker reduce costs. Karlheiz Blessing, a member of the Volkswagen board who represents human resources, said the automaker continues to move closer to its goal of 9,300 contracts signed, and employees who want the early retirement plan have until July 31 to make a decision. Employees born between 1955 and 1960 are the main target of the retirement plan.

The buyout is also part of Volkswagen’s Transform 2025+ initiative, which aims to cut the workforce and improve the automaker’s productivity by 25 percent through 2025. However, VW also revealed that there won’t be any forced layoffs as part of the plan. Transform 2025+ also aims to reposition and restructure the Volkswagen brand by aiming to become a world leader in mobility solutions via the advancement of electric vehicles and improving connectivity.

Volkswagen will also increase its activity in North America where it will start producing vehicles riding on the MEB platform from 2021. For China, the automaker will launch a full range of electric vehicles and crossovers to take advantage of the growing economy. Volkswagen also aims to change the company’s corporate culture and organization with a new corporate mission and leadership model aimed at improving its attractiveness as an employer.

Source: Volkswagen, Reuters via Automotive News (Subscription required)

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