Volkswagen will cut one of three shifts at its Chattanooga, Tennessee assembly plant within the next week, intensifying concerns over potential job losses. The company said the move aims to streamline operations by adopting a “highly efficient two-shift model,” enhancing competitiveness and agility. However, employees view the decision as a threat to jobs and workplace stability.
The German automaker, which employs over 4,000 workers at the plant, manufactures the ID.4 electric SUV, Atlas, and Atlas Cross Sport models at the site. While Volkswagen has launched a voluntary attrition program offering buyouts, it has not disclosed how many jobs it plans to eliminate or the extent of layoffs if voluntary departures fall short.
Frustration among workers is growing. One employee, voicing discontent on social media, called for a strike vote to “save our company and community from these greedy people.” The comments reflect broader anxieties across the automotive sector, where cost-cutting and restructuring have become increasingly common amid the shift to electric vehicles.
The Chattanooga move is part of a global restructuring trend. Late last year, Volkswagen undertook the largest job cut in the European auto sector since World War II, slashing 35,000 jobs in Germany—more than a third of its workforce there. Its subsidiary, Audi, has also announced plans to eliminate up to 7,500 positions in Germany by 2029.
In the U.S., other major automakers are following a similar path. Stellantis, Ford, and General Motors have all implemented workforce reductions in recent months following the United Auto Workers (UAW) contract negotiations. Just last week, Stellantis announced new buyouts across 20 facilities in Michigan, Ohio, and Illinois.
At Chattanooga, the UAW—having secured union representation at the plant in 2023 after failed efforts in 2014 and 2019—has filed an unfair labor practice complaint, accusing Volkswagen of not negotiating the cuts with union representatives. The company, however, insists that discussions with the union had been ongoing for months, raising questions about internal communication and transparency.
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