Wolfsburg AG and its staffing subsidiary, Autovision, are feeling the impact of Volkswagen’s financial difficulties. The car manufacturer’s crisis is hitting both companies hard, leading to potential job cuts and financial struggles.
Volkswagen’s cost-cutting plan leads to job cuts at Wolfsburg AG and Autovision
At the end of 2023, Volkswagen introduced its global performance program “Accelerate Forward/ Road to 6.5,” aiming to achieve a 6.5% profit margin by 2026. To reach this target, the automaker plans to save €10 billion through reductions in material, development, and production costs, alongside a decrease in its workforce. As part of these efforts, Volkswagen is offering severance packages and expanding early retirement options. Additionally, the number of temporary workers will be reduced, directly affecting Autovision, the staffing subsidiary of Wolfsburg AG. According to its website, Wolfsburg AG is a joint venture between the city of Wolfsburg and Volkswagen Group.
Wolfsburg AG employs 85 permanent staff, while Autovision has 165. Autovision also manages 3,650 temporary workers, most of whom are employed by Volkswagen. With both Wolfsburg AG and Autovision financially dependent on Volkswagen, they are severely impacted by the automaker’s cost-cutting measures.
Economic downturn forces Wolfsburg AG to sell iconic stadium
In mid-August, Wolfsburger Nachrichten reported that Wolfsburg AG and Autovision could face significant job cuts by 2025. Later in August, WirtschaftsWoche provided further details, with a spokesperson from Wolfsburg AG stating that the temporary staffing market is currently “depressed.” The ongoing transformation from internal combustion engines to electric vehicles has reduced demand for Autovision’s services, while Wolfsburg AG’s project business has also weakened. These factors are negatively affecting Wolfsburg AG’s business model, though the company’s liquidity is secured for the 2024 fiscal year.
The financial situation at Wolfsburg AG appears so dire that the company has already sold one of its most prestigious properties, the Volkswagen Arena in Wolfsburg’s Allerpark. According to Wolfsburger Nachrichten, Wolfsburg AG completed the long-planned sale of the Volkswagen Arena, the AOK Stadium, and the associated VfL-Center administrative building to VfL Wolfsburg-Fußball GmbH in early summer.
Uncertainty looms over Autovision as challenges persist
Autovision’s temporary staffing business continues to pose challenges for Wolfsburg AG. According to WirtschaftsWoche, there are internal concerns that Autovision might be sold or even shut down. However, a spokesperson for Wolfsburg AG declined to comment on these speculations. The future of both Wolfsburg AG and Autovision remains uncertain as they navigate the financial difficulties stemming from Volkswagen’s ongoing crisis.
