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Volkswagen nears deal with unions to keep car plants open, Bloomberg says

Published by Global Banking & Finance Review

Posted on December 19, 2024

1 min read

· Last updated: January 27, 2026

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Volkswagen and Unions Near Deal to Keep German Plants Open

BERLIN (Reuters) - Volkswagen and labour unions are nearing an agreement to restructure the brand without closing factories in Germany, Bloomberg reported on Thursday, citing people familiar with the matter.

The management is willing to keep plants running and restore job security agreements until 2030 in exchange for workers foregoing bonus payments, the sources said.

Additional cost-cutting measures include moving production of the Golf hatchback from Germany's Wolfsburg factory to Mexico, and ending the production of VW-branded electric vehicles in Zwickau to trim capacity, according to the sources.

(Reporting by Maria Martinez; Editing by Sherry Jacob-Phillips)

Key Takeaways

  • Volkswagen and unions are close to a restructuring deal.
  • Factories in Germany will remain open until 2030.
  • Workers may forego bonus payments for job security.
  • Production of the Golf hatchback may move to Mexico.
  • VW-branded electric vehicle production may end in Zwickau.

Frequently Asked Questions

What is the main topic?
The main topic is Volkswagen's negotiation with unions to keep German car plants open until 2030.
What changes are proposed in the deal?
The deal includes keeping plants open and job security in exchange for workers foregoing bonus payments.
Where might production be moved?
Production of the Golf hatchback may move from Germany to Mexico.

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