According to the Volkswagen Group's Global Works Council, Group management plans to freeze wages for approximately 660,000 employees worldwide through 2030. The proposal also includes cuts to variable compensation, special payments and employee benefits, further tightening control over personnel costs. Taking inflation into account, the absence of pay increases could reduce the real income of employees in Germany by around 10% by 2030.

Volkswagen Group has not formally confirmed the proposal, stating that any measures concerning labor costs will be discussed in upcoming negotiations. Employee representatives and trade unions have strongly opposed the plan, emphasizing that wage adjustments should be determined through collective bargaining between labor and management.

The proposed wage freeze forms part of Volkswagen Group's broader cost-cutting program and has been incorporated into its "Group Target Picture" transformation strategy. Under the plan, all brands, regions and plants across the Group are expected to make an appropriate  contribution to cost savings. Measures such as controlling labor costs and improving production efficiency are intended to strengthen the Group's operating performance.

In September, the Volkswagen Group Supervisory Board approved the "Future Plan 2030." Building on an earlier workforce adjustment plan covering approximately 50,000 positions, the Group announced plans to adjust a further 50,000 positions, bringing the total to around 100,000. In addition, four plants in Germany—Emden, Zwickau, Hannover and Audi's Neckarsulm plant—face uncertainty over their future production assignments, as follow-on production plans have yet to be finalized.

As the proposed wage freeze and workforce adjustments move forward, Volkswagen Group is implementing a range of measures to reduce personnel costs and improve operational efficiency. However, these measures are also intensifying challenges related to wage growth, job security and labor relations.