Volkswagen Group (VOW) Agreement presentation summary

Strategic workforce and capacity adjustments

• Over 35,000 reduction in German workforce by 2030 through natural attrition, early retirement, severance, hiring freeze, and fewer apprenticeships, equating to a reduction of more than 30%.

• Technical capacity in Germany to be reduced by over 730,000 vehicles, with significant adjustments at key production sites and reallocation of models to enhance synergies.

• Productivity and factory cost targets set as prerequisites for future investments at major German locations.

Cost reduction and financial impact

• Sustainable personnel cost relief of €1.5 billion per year achieved through collective bargaining, with a mid-term target of €4 billion annual cost relief.

• Short-term cost effect of €1.5 billion per year and cumulative cost effects exceeding €15 billion by 2030.

• Wage increases suspended from 2025 to 2030, with possible future increases partly used to align compensation to benchmarks.

Labor agreements and employee measures

• Exclusion of forced redundancies agreed until December 2030, ensuring socially responsible workforce reduction.

• No bonus payments for tariff employees in 2025/2026, with staggered reductions for 2027-29; jubilee bonuses reduced and vacation pay cut.

• Standard 35-hour workweek for tariff employees from July 2025; new competition-oriented remuneration system to be introduced from 2027.