Volkswagen's Electric Revolution: Confronting Crisis and Job Cuts Amidst EV Growth

The Volkswagen Group is navigating a turbulent and contradictory phase in its transition toward electric mobility. Despite demonstrating strong global growth in electric vehicle (EV) deliveries, totaling 717,500 units in the first nine months of 2025 (a 41.7% increase), the company is facing an intense crisis driven by aggressive Asian competition, high energy costs, and a drop in demand for EVs in key markets like China. In response, VW plans massive staff reductions, potentially reaching 46,500 job cuts across the Group (including 35,000 at the core Volkswagen brand), and has reportedly warned of the possible closure of three plants. To safeguard employment, labor unions like Ig Metall proposed cost reductions of approximately €1.5 billion, including the suspension of bonuses for workers and management, in exchange for job security at German facilities. Critics argue that the Group—which still posted a net profit of €4 billion in the first half of 2025—is shifting the costs of the transition onto its workforce while seeking public subsidies. If you enjoyed this episode and found it helpful, please consider supporting the podcast with a donation at buymeacoffee.com/calpurnianews. Every contribution helps us create quality content and share valuable insights. Don’t forget to follow the channel so you won’t miss future episodes. Thank you so much to all our listeners!