Reports emerging this week suggest Volkswagen is eyeing one of the automotive industry’s biggest overhauls yet: slashing up to 100 000 jobs worldwide, and shutting down production at four German plants. For a giant that employs around 660 000 people globally, this represents roughly 15% of its workforce and could mark the most radical restructuring in its 89-year history.
As someone who’s spent years behind the wheel of everything from the popular Polo siblings to the premium Touareg, this news hits hard. VW has been a trusted name in Mzansi since 1951. From the original Volkswagen, aka Beetle, to Golf, Polo, Polo Vivo later, Tiguan, and the hardworking Amarok bakkie, the brand has been a staple globally and locally. These cuts aren’t just numbers on a balance sheet; they’re families, skills, and communities affected in Germany, with ripples that are probably going to reach our shores. So the pressure is real.
Volkswagen Group CEO Oliver Blume and Volkswagen brand CEO Thomas Shafer, lead teams that face stiff competition from agile Chinese brands flooding the market with more affordable cars. Alongside high energy costs, slowing EV demand in Europe, and the need to slash investments by about 15%, the group is attempting to cut as many costs as possible. Unfortunately people will be casualties. Earlier plans for 50 000 head reductions have apparently escalated, with powerful industry unions like IG Metall already vowing resistance.
In Mzansi we would of course expect NUMSA to lead the charge against the letting go of people. Whether it would be enough (they could not stop General Motors from leaving for example) or not is something to be seen.
