Volkswagen and Audi face labor disputes and strategic shifts

Volkswagen Group is facing significant internal tension as it cancels ten collective agreements, including those governing working hours and vacation. CEO Oliver Blume stated the revisions were necessary due to global changes and claimed the move was requested by employees. However, IG Metall and works council head Daniela Cavallo rejected this, calling it a “distortion of facts” and a breach of trust.

Amidst these structural challenges, Audi has launched a pilot program to temporarily lend employees—primarily engineers, project managers, and quality assurance specialists—to regional defense companies such as Airbus, MBDA, Diehl, and KNDS. This voluntary secondment lasts up to 24 months, allowing staff to remain employed by Audi while addressing labor shortages in the defense sector and managing fluctuating demand in the automotive industry.

Separately, Audi CEO Gernot Dollner addressed concerns regarding the company’s Formula 1 project. He emphasized that the F1 operation is financially independent from the broader Volkswagen Group crisis and is structured to reach break-even within the decade, despite rumors of potential share sales to external investors.