What cost-cutting measures is Volkswagen implementing in Germany?

Volkswagen has reduced costs at its German plants by an average of 30% and has seen 25,000 workers sign partial retirement or severance agreements.

When will Volkswagen launch its new electric small car?

The first model of Volkswagen's new electric small-car family, the ID.Polo, is scheduled to launch next year with a starting price of around 25,000 euros.

How many jobs will be cut by Volkswagen in Germany by 2030?

Volkswagen plans to cut 35,000 jobs in its German operations by 2030 as part of a major restructuring agreement.

Home / Business and Economy / VW's German Plants Cut Costs by 30%

VW's German Plants Cut Costs by 30%

18 Dec, 2025

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Summary

Volkswagen's core brands slashed factory costs by 30%.
25,000 workers accepted partial retirement or severance deals.
New small electric car to launch next year at 25,000 euros.

Volkswagen is advancing its cost-reduction strategy, with its core brands' plants in Germany seeing an average cost decrease of 30%. This financial restructuring has also resulted in 25,000 employees accepting partial retirement or severance packages, as the automaker navigates increased competition and a slower transition to electric vehicles.

The company aims to demonstrate that competitive car manufacturing is achievable in Germany. An agreement reached in December 2024 with unions outlines a significant overhaul of German operations, targeting 35,000 job cuts by 2030. This move addresses challenges posed by cheaper rivals and the evolving automotive market.