Thousands to lose their jobs as VW slashes $11 billion in costs
Warnings about another wave of massive job losses at Volkswagen have been circulating for a few weeks, but now a new report says the company will cut one-fifth of its administrative staff. But it is hoping to soften the blow by offering early retirements as opposed to all-out firings, for now at least.
The plan, according to an internal memo sent to staff members, is to cut staff through partial or early retirement as opposed to layoffs, and not hiring new people to fill those jobs, according to Automotive News Europe. Back in June, the VW Group announced a new cost-cutting program designed to save €10 billion ($10.8 billion) by 2026, and this is all part of that. The goal is to meet a return-on-sales target of 6.5%, which is up from 3.6% last year, according to Reuters.
“We will need to operate with fewer people in many areas at Volkswagen in the future,” VW CEO of passenger cars Thomas Schäfer told employees yesterday, according to the report. “This doesn’t mean more work for fewer people, but rather shedding old habits and saying no to duplicating efforts and inefficiencies.”
The job cuts are part of the automaker’s struggle to keep pace as the industry shift to EVs, with VW’s electric car orders falling in Europe. The company has already slashed production at several plants in Germany, and now it’s facing mounting pressures from EV competitors Tesla and BYD, which are taking a hefty market share in VW’s biggest markets. Higher interest rates and inflation and an end to EV subsidies in Germany have also taken their toll on VW, Europe’s biggest automaker.
Other cost-saving measures, reports Reuters, include reducing product cycles from three years to 50 months, slashing overall production times, and offering fewer model options and trims. Plans for a new €800 million R&D site in Wolfsburg, Germany, have also been scrapped. Schäfer just came out and said last week at a staff meeting: “With many of our pre-existing structures, processes, and high costs, we are no longer competitive as the Volkswagen brand.”
Electrek’s Take
Tough days for VW, which has struggled to transition to EV powertrains, which are much more expensive than an equivalent ICE vehicle, and that difference is more noticeable in VW’s market segments. Plus they’ve unrolled some uninspiring products with chaotic, buggy software issues, creating a ton of bad buzz, and that hasn’t helped matters. And let’s not forget that VW is no stranger to axing jobs. They cut 30,000 jobs, with 23,000 of those in Germany, after Dieselgate back in 2016, as part of a “restructuring” designed to help the company recover from the scandal.
Plus VW has been announcing job cuts for months: Volkswagen’s Zwickau site, which employs 10,000 and is the first to exclusively produce electric cars, has already been shaving off jobs due to weakening production demands, starting with 500 temporary jobs being cut next year. At VW software subsidiary Cariad, 2,000 of 6,5000 people employed there will lose their jobs over the next two years.
It’s important to note too that the company’s supervisory board has to sign off on job cuts, and labor representatives and officials “representing the state of Lower Saxony” hold more than half the seats, writes Reuters. While VW originally said that no jobs would be lost before 2029, perhaps this softer touch of “early retirements” – although we still don’t have exact numbers or how early these people will be pushed out – will be enough to get everyone on the same page until then.
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T1 Energy (NYSE: TE), formerly FREYR Battery, kicks off preparations for its new solar cell factory, set to be one of the largest in the US.
T1 Energy has chosen Yates Construction as the contractor for preconstruction services and site preparations for its planned $850 million, G2_Austin 5 GW Solar Cell Facility.
The G2_Austin site is in Milam County, Texas, in the Advanced Manufacturing and Logistix Campus at Sandow Lakes.
It’s expected to create up to 1,800 new direct US advanced manufacturing jobs. Construction is on track to kick off in mid-2025, and the facility is expected to begin producing cells by the end of 2026. There are currently far fewer solar cell manufacturing sites in the US than solar module factories, according to the SEIA.
On December 24, FREYR announced that it had closed its acquisition of China-headquartered Trina Solar’s 5-gigawatt (GW), 1.35 million-square-foot solar panel factory in Wilmer, Texas. The company renamed the factory G1_Dallas, which employs more than 1,000 people and is now fully online.
Daniel Barcelo, T1’s chairman of the board and CEO, said, “Our facilities will manufacture solar cells and modules to invigorate our economy with abundant energy. We’re excited to work with Yates and Milam County to bring American advanced manufacturing to the heart of Texas and to unlock our most scalable energy resources.”
T1 Energy says it anticipates finalizing commercial terms with Yates Construction as General Contractor.
Read more: FREYR rebrands after killing its $2.6B Georgia battery factory plans
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![Kia's affordable EV2 may be small, but it looks bigger in person [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/05/Kia-EV2-closer-look.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
The EV2 is set to arrive as Kia’s smallest and most affordable electric vehicle next year. With its official debut coming up, the electric SUV was spotted driving on public roads. The electric SUV may be small, but it looks bigger in person.
Kia’s new EV2 is an affordable, small electric SUV
Kia has yet to say precisely how big the EV2 will be, but it’s expected to be around 4,000 mm (157″), or slightly smaller than the EV3 at 4,300 mm (169.3″). That’s even more compact than the outgoing Chevy Bolt EV (163.2″).
During its EV Day event in April, Kia unveiled the Concept EV2, a preview of the entry-level EV that will sit below the EV3.
Although it’s the brand’s smallest EV, Kia promises that it will feel larger when you’re inside. The EV2 sits higher than you’d expect with a wide front end, giving it a bigger presence on the road, similar to the three-row EV9.
We got a sneak peek at Kia’s affordable EV last month after it was spotted testing on public roads in Korea, but the latest sighting gives us a closer look at the EV2 in its production form. The new video from HealerTV reveals a few details that could look a little different from the concept.
The footage shows what appears to be different daytime running lights (DRLs). When Kia unveiled the Concept EV2 in April, it featured a unique split vertical headlight design.
The EV2 spotted driving still has the split design, but both the inner and outer lights appear to be angled more inwards. It’s not a huge difference, but given most of Kia’s new EVs look almost identical to the concepts, this could be something to keep an eye on.
Prices, specs, and more
Despite being an entry-level model, the EV2 is still equipped with advanced technology and features, including vehicle-to-load (V2L) capability, which allows it to power a campsite, home appliances, and other electronics. With OTA updates, it will only get smarter and more advanced over time.
The interior will feature Kia’s new ccNC (connected car Navigation Cockpit), which features dual 12.3″ driver cluster and touchscreen navigation screens in a panoramic display.
Like its other new EV models, it’s also expected to include a 5″ climate control display for nearly 30″ of screen space.
Kia plans to launch the EV2 next year in Europe and “other global regions.” For those in the US, sorry to disappoint, but it’s not expected to make the trip overseas. We do have the EV4, Kia’s first electric sedan, to look forward to.
We will learn prices and final specs closer to launch, but given it will sit below the EV3, it will likely be cheaper than that.
The EV3 starts at £32,995 ($44,800) in the UK and €35,990 ($41,600) in Europe. Kia’s CEO, Ho-Sung Song, told Autocar in 2023 that the company aims to launch the EV2 at around £25,000 ($32,000) in the UK. With new battery technology and other advancements, it could be even more affordable when it arrives next year.
Kia isn’t the only automaker gearing up to launch a new entry-level EV. Last week, we got a glimpse of the upcoming Volkswagen ID.2 after it was spotted in public testing.
Should Kia bring the EV2 to the US? Would you buy one for around $30,000 or even slightly less? Drop us a comment below and let us know.
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