Volkswagen CEO Proposes Longer Working Hours in Germany to Reduce Costs

Volkswagen’s top executive is pushing for longer working hours at the company’s German operations as part of a broader effort to bring costs down. According to Yahoo Finance, the CEO floated the idea as a way to improve the automaker’s competitiveness during a period of intense pressure on the European auto industry.

The proposal marks a notable shift in tone for Volkswagen, which has been grappling with the need to balance its traditional manufacturing base in Germany against rising competition and the costly transition to electric vehicles. Extending working hours is being positioned as an alternative to deeper cuts, though it would still represent a meaningful change to long-established labor arrangements in the country.

The suggestion arrives as German automakers face a difficult mix of soft demand, elevated production costs and fierce competition from lower-cost producers. For Volkswagen, keeping factories in Germany running efficiently while investing heavily in electrification and software has become a central strategic challenge.

Labor relations are likely to be a critical factor in how the proposal develops. Germany’s co-determination system gives workers a strong voice in company decisions, meaning any change to working time would need to be negotiated rather than simply imposed.

If pursued, the idea could set a precedent for other European manufacturers weighing similar measures to protect margins. For now, it remains a proposal from the CEO rather than a finalized plan, and its fate will depend on talks with employee representatives and the company’s broader restructuring roadmap.