Volkswagen to cut battery production plans in Salzgitter

A spokesperson from the works council confirmed that they were shown a slide at a staff meeting that showed plans for just one production line with a capacity of 20 GWh. VW’s battery subsidiary PowerCo announced in June that the first production block at the cell factory in Salzgitter had been completed and that pre-series production of the company’s unified cell would start before the end of the year. Regular series production is scheduled to kick off in 2025.

According to Reuters, that plan still stands, and the factory’s capacity could increase in the long term. “The Group is sticking to its plan to establish its battery cell production with PowerCo at three locations in Europe and North America. Series production in Salzgitter is scheduled to start in 2025 as planned. The further expansion of production capacities will be driven forward flexibly and in line with demand. Under the current economic conditions, it is also important to position PowerCo competitively overall and to ensure optimal plant utilisation. Decisions have not yet been made,” a PowerCo spokesperson said.

VW announced last week that it may have to close plants to cut costs. The works council now fears that the second line may not only be delayed but could be scrapped altogether. Moreover, the manufacturer officially cancelled its collective agreement and job security, which had been in place since 1994. The current deal would have run until 2029 but will now expire at the end of the year. Six months later, layoffs for operational reasons will be possible, i.e. from July 2025.

However, it is still unclear where VW intends to cut back. In view of the involvement of the state of Lower Saxony, the local plants in Wolfsburg, Hanover (VW Commercial Vehicles) and Emden, as well as the component plants in Brunswick, Salzgitter and Osnabrück, are considered untouchable. That leaves the MEB plant in Zwickau, the Transparent Factory in Dresden, and the component plant in Kassel – and possibly the PowerCo factory in Salzgitter.

The smallest vehicle plant with 8,500 employees in production is located in Emden in northern Germany – the ID.4 and ID.7 are built there, and Emden will become an exclusively battery-electric car plant from 2025. However, the German state of Lower Saxony has protected the site with its 20 per cent voting rights. There have been repeated rumours of a possible sale of the Osnabrück components plant with its 2,300 employees – but not of a closure. The fact that Audi is openly discussing the option of closing its factory in Brussels was already seen as a turning point.

Moreover, Volkswagen announced that there will be a change of management. From 1 October, Patrik Mayer and David Powels will effectively swap positions and responsibilities. Mayer, who has served on the Board of Management of the VW passenger car brand will thus become Chief Financial and IT Officer at Seat.

“In these times, the finance department is undoubtedly of great importance. As CFO of the Volkswagen brand, Patrik Andreas Mayer has made a significant contribution to the structured and successful launch of the performance program. David Powel will build on this. And at the same time – under even more difficult conditions – provide impetus for competitive costs and structures. It is also about leveraging the synergies within the Brand Group Core with the utmost consistency,” said Thomas Schäfer, Member of the Board of Management of Volkswagen AG, Brand Group Core & CEO of Volkswagen Brand.

reuters.com (Salzgitter), heise.de (job securities, in German), volkswagen-newsroom.com (change in management)