VW lays off workers - what's really going on?
VW lays off workers across Germany, and this decision has shaken the entire auto industry. In this ApA-Channel analysis, I explain what's really behind the cuts, why Volkswagen is being forced to take such drastic measures, and how these changes will affect workers, the market, and the future of the brand.
As a double degree auto mechanic (Sarajevo '95, USA '01) and passionate car lover, I can tell you:
This is no small change. This is VW's biggest reset in 30 years.
That's why in this ApA-Channel analysis I explain what's really happening, why VW is laying off workers, who's to blame, who wins and who loses - and what all this means for the future of cars.
⚡ 1. Electrification is the main reason for layoffs
Electric cars have:
- 70% fewer parts than gasoline ones
- 80% fewer failures
- No oil, gaskets, belts, turbines, spark plugs
This means one thing:
👉 less mechanical work
👉 fewer factories
👉 fewer jobs
VW joined the race with Tesla and Chinese brands late, and is now trying to catch up.
Tesla already has factories that operate quickly, automatically, and with fewer people.
The Chinese produce even faster and even cheaper.
VW must cut costs – or drop out of the race.
📉 2. Sales of electric VW models are weaker than expected
The ID.3, ID.4, ID.5 and ID.7 models are sold, but not as much as Volkswagen had planned.
Reasons:
- too high a price
- too slow software
- problematic infotainment
- strong Chinese competition
- Tesla's dominance in the EV segment
VW expected a boom - it got stagnation.
That's why they are now cutting production shifts, relocating workers, and introducing restructuring.
🇨🇳 3. Chinese competition is eating the market
VW's biggest fear isn't Tesla - it is China.
Brands like BYD, MG and NIO offer:
- cheaper EV models
- more modern software
- greater range
- faster production
- aggressive prices in Europe
VW can't keep up with that pace right now.
Result?
👉 Mass layoffs to cut costs.
🏭 4. VW is closing lines, merging plants and cutting thousands of jobs
VW confirmed:
- abolition of night shifts
- shutting down production lines for slower models
- automatic elimination of jobs by retirement
- significant reduction in administration
- transfer of workers to EV drives or complete dismissal
Honestly?
This is the worst blow to VW since the Dieselgate scandal.
🧰 5. What does this mean for mechanics, repair shops and workers?
As a mechanic who gained experience in Sarajevo, America, I can say one thing:
👉 This is the end of an era.
Electric cars mean:
✔ fewer failures
✔ fewer mechanical interventions
✔ more electronics, software and diagnostics
✔ more IT skills, less classical mechanics
Those who do not adapt will find it difficult to survive.
And if you want to see how deep this industrial crisis is, read my article where I explain how Mercedes had to pay a whole billion euros in severance pay https://apachannel.com/mercedes-otpremnine-milijarda-eura/
🚘 6. What does this mean for ordinary drivers?
VW will now:
- lower the prices of some models
- invest more in the electric range
- update software
- make simpler models to stay competitive
And for us drivers, that means:
✔ multiple choices
✔ more technology
✔ fewer failures
✔ but more expensive electronics repairs
❤️ 7. My personal attitude as a car mechanic and VW lover
I loved the Golf. I still love him.
The Golf GTI is one of the most honest sports cars in history.
But also – I see where Volkswagen went wrong:
- they were behind America
- they were behind Japan
- lagging behind China
- software lags
- late in modernization
They have quality.
They have the heart of a car.
But technology has overtaken them.
And that's why all this is happening today.
🔮 8. Is VW failing? No. Does it change? Yes – brutal.
VW is entering the biggest transformation in its history.
Those hoping for the "return of the old VW" - forget it.
VW is going to:
- electric future
- software
- autonomous systems
- digitalization
- cost reduction
- global competitiveness
It's the only way to survive.
And they will survive — but different.
❓ FAQ - the most frequently asked questions about layoffs at VW
Is VW really laying off thousands of workers?
Yes. It is a long-term restructuring plan that lasts until 2030.
Is the problem only in electric vehicles?
No, but the EV transition is the main cause. Software and Chinese competition also play a big role.
Will VW make its cars more expensive?
In the short term – no. In the long term – it depends on the production costs and the success of the EV model.
Are gasoline and diesel cars disappearing?
Not right away. But they're slowly leaving.
EU regulations are slowly phasing them out.
Are VW electric models bad?
They're not bad – but they're not the best. This is where VW loses the battle.
🏁 Conclusion: This is just the beginning of a great upheaval
VW is not going bankrupt.
VW is reinvents.
This is a painful but necessary process.
And only brands that adapt - survive.
And ApA-Channel will follow every step of that transformation and explain it the way I know it best:
👉 practical
👉 honestly
👉 professional
👉 from experience
The end of an era.
The beginning of a new one.
„"If you want to see how deeply the crisis is affecting people, read the DW article about what it means when VW cuts jobs — that story shows the whole background of the problem."“ https://www.dw.com/hr/kako-će-wolfsburg-preživjeti-krizu-vw-a/a-70553748
How do you think the German automotive industry will adapt to Chinese competition? Share your thoughts on the restructuring plan and the future of VW workers in the comments!
