Overview

• Volkswagen has committed to keeping its Zwickau plant operational until 2031 by shifting its focus from EV production to automotive recycling.
• The agreement follows a period of strikes and negotiations after the plant faced potential closure and a proposed 10% wage cut in late 2024.
• Workers remain concerned about job security, with unions calling for a 7% wage increase to offset growing economic anxiety.
• The German auto industry, employing 4.6 million people directly and indirectly, faces declining EV demand and a 40% profit drop for VW and Mercedes in early 2025.
• Employees fear a repeat of the crisis after the six-year agreement ends without decisive political action or a clear strategic plan from VW leadership.