Volkswagen urged to adopt 40‑hour workweek to cut costs amid German auto industry crisis

Economist Ferdinand Dudenhöffer, head of the private Center Automotive Research institute, is calling for an end to the 35‑hour week at Volkswagen. He argues that reinstating a 40‑hour week without additional pay could alleviate the “high production‑cost problem” and suggests temporarily suspending tariff autonomy – “Schmeißen wir die Tarifautonomie weg für ein paar Jahre!” – to make the change possible. Dudenhöffer warns of “hard times” ahead but is optimistic that the German car sector could see an upturn in five to seven years.

The demand comes as Volkswagen reports a 9 % drop in vehicle sales in Q2 2026 and faces a possible closure of four German plants (Hannover, Emden, Zwickau, Neckarsulm). Analysts cite a potential global layoff of 100‑120 000 jobs. Similar pressure is evident at Mercedes‑Benz, which has proposed extending the workweek from 35 to 40 hours, adding roughly 260 extra hours per employee per year, prompting protests involving tens of thousands of workers.

Both proposals reflect broader attempts by German automakers to reduce costs and stay competitive amid slowing demand, intense price competition and a shift toward electric vehicles.