VW invests 1 billion in Baunatal – 720 jobs are wobbling!

VW invests 1 billion in Baunatal – 720 jobs are wobbling!

Volkswagen is planning a major investment of over 1 billion euros in the Baunatal plant, the company's largest components plant. Of the total funds earmarked, 800 million euros are allocated to the production of new products in the area of ​​e-mobility, while a further 200 million euros are planned for other areas. This was announced at a works meeting on June 4th, 2025. A central goal of the investments is to secure around 3,500 jobs in the long term at the factory, which produces essential parts of the electric drive train, including production for the new future platform, which is called the Scalable Systems Platform (SSP).

The investments also include an expansion of spare parts logistics, which will be strengthened with around 90 million euros this year. Plant manager Jörg Fenstermann explained that the restructuring is necessary to master the challenges of electromobility. From 2029, VW plans to produce 6,000 electric motors for the SSP every day.

Job cuts and uncertainty

Nevertheless, the switch to e-mobility also brings with it significant cuts. After the summer, 720 temporary workers whose contracts expire at the end of July and August will no longer be employed. There is uncertainty about future employment for around 400 temporary employees whose contracts run until the end of December. IG Metall Nordhessen has already expressed concerns about the prospects for these laid-off employees. Redundancies for operational reasons are excluded, but almost a quarter of the 130,000 jobs in Germany are expected to be lost by 2030, mainly through early retirement and severance payments.

The situation at the Baunatal site remains tense, as 20,000 departures have already been contractually agreed. Discussions about outsourcing the factory logistics are imminent and a decision about the future handling of the crossdocks is still pending.

Future-oriented products

A bright spot in communication is the planned launch of the ID concept car. EVERY1, an entry-level model in e-mobility that is scheduled to come onto the market in 2027, even if the drive will not be manufactured in the Kassel factory. A partner factory in Tianjin will be responsible for this.

The investments made by VW and the associated measures are intended to help lead the Baunatal location into the future, even if the transformation process to electromobility is associated with challenges. In order to offer perspectives to temporary workers who are no longer employed, a job fair is organized in collaboration with Autovision and the employment agency.

The developments at the VW site in Baunatal illustrate the comprehensive changes in the automotive industry and the necessary steps to adapt to the requirements of e-mobility. This brings the focus to the upcoming changes and the challenges for employees.

Volkswagen itself reiterates its commitment to the future, while current developments and the treatment of employees indicate that the situation is being handled sensitively. The next steps will be crucial for the future of the plant and its employees.