Volkswagen Cancels Major Manufacturing Project at Wolfsburg HQ; ZF Plans to Cut About 14,000 Jobs This Decade

On November 11, Volkswagen Group announced the cancellation of a major advanced manufacturing project at its Wolfsburg headquarters and scrapped investment plans for large-scale upgrades to production technology at its German headquarters, including the introduction of large-scale die-casting technology. The decision was opposed by union representatives. Volkswagen said it is reassessing investment plans for its German plants. On the same day, the Volkswagen brand said its sales of battery electric and hybrid vehicles in the Chinese market hit a record high last month, with models such as the ID. ERA 5S sedan serving as the main drivers of growth. Volkswagen expects further sales growth in China in 2026 and aims to rank among China's top ten best-selling electric vehicle brands in 2027. Mercedes-Benz CEO Ola Källenius said at a forum in Berlin that the company's negotiations with German employees over extending working hours without increasing pay must yield substantive results. He said that given declining sales in the Chinese market, the company is shifting to a "100% in China, for China" strategy. Previously, Mercedes-Benz mainly developed models such as the C-Class and E-Class in Germany and then adapted them to Chinese consumer demand. ZF, a supplier of transmissions and braking systems, has reduced employee working hours at multiple German plants. ZF CEO Mathias Miedreich said at a conference in Berlin on November 11 that working hours at some plants have been cut to 30 hours per week or even less. The company plans to cut about 14,000 jobs this decade. Renault CEO Francois Provost said in Berlin that without changes, Europe's total vehicle production will be halved.