Volkswagen Ag · XETR:VOW
Volkswagen — Corporate Update (November 2024)
24 slides from Volkswagen's corporate update, Nov 20, 2024
Slide 1: Workforce transformation in the Volkswagen Group
Workforce transformation in the Volkswagen Group Dr. Thymian Bussemer Head of Group HR Strategy & Innovation
Slide 2: Quantitative Transformation
1 2 Quantitative Qualitative Transformation Transformation 11/22/2024 2
Slide 3: Occupation at Volkswagen Group: 35 years of constant growth
Occupation at Volkswagen Group: 35 years of constant growth 1990 2023 684.025 385.338 298.687 257.930 165.711 92.219 Total workforce Workforce Workforce Total workforce Workforce Workforce in Germany outside Germany in Germany outside Germany Source: Volkswagen Group annual reports 11/22/2024 3
Slide 4: Value creation in the automotive industry is shifting towards EV & software
Value creation in the automotive industry is shifting towards EV & software - the current workforce structure at Volkswagen does not reflect future "profit pools" Half of the Group's employees are currently still engaged in direct production activities Indirect 327.027 328.241 ICE-based 296.961 reve
Slide 5: Workforce transformation as central strategic objective of Volkswagen for the next decade
Workforce transformation as central strategic objective of Volkswagen for the next decade Product strategy affects needed Workforce faces a combination of Effective management of wages skills and quantity of work growth, relocation and downsizing in the transformation essential ICE BEV Restructuri
Slide 6: Growth and decline of professions has always been part of Volkswagens' workforce development
Growth and decline of professions has always been part of Volkswagens’ workforce development IT & R&D Production Sales & Software Marketing 700.000 Workforce 600.000 500.000 400.000 Indirect Workforce 300.000 Direct 200.000 Workforce 100.000 0 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 S
Slide 7: The rise and fall of professions
The rise and fall of professions Job losses and gains in key occupational groups in the automotive industry 2019-2023 in % Occupational safety 270 Legal advice 58 Changes in the relevance of individual occupational groups Softwaredevelopment 46 in the automotive industry Relevance decreases (e.g.) R
Slide 8: Automatization is since decades a constant driver for the decline of work volume
Automatization is since decades a constant driver for the decline of work volume in different segments of production Number of robots vs. people in coachbuilding, plant Wolfsburg 4.740 4.045 3.600 3.539 3.344 2.543 2.300 Human 1.576 1.613 1.650 2.265 Robots 68 113 217 Golf I Golf II Golf II Golf IV
Slide 9: The current transformation towards BEVs brings a new push in the decline of work volume
The current transformation towards BEVs brings a new push in the decline of work volume in our factories Vehicle production Electric powertrain Gearbox in mix in mix ICE & BEV vs. ICE powertrain ICE & BEV - 12 % - 60 % - 70 % Support and enable Provide meaning for work- people in shifting jobs force
Slide 10: The German automotive industry had reached its occupational peak in 2019
The German automotive industry had reached it‘s occupational peak in 2019 (958 tsd.) Electrification is linked to a decline in demand for labor. Estimated 190,000 people between 2019 and 2035 Individual professions are becoming much more relevant and new occupational fields are emerging, while other
Slide 11: Qualitative Transformation
1 2 Quantitative Qualitative Transformation Transformation 11/22/2024 11
Slide 12: The changing world of work as an omnipresent phenomenon
The changing world of work as an omnipresent phenomenon Number of workers foreseeing disruptive 17 4 3 54 2 6 2 18 change of requested skills (in mill.) 36 32 24 13 Loss and rise of 5 employment in -5 -2 different economic -8 -6 sectors -17 Office Customer Production Food Mechanical Business Trans-
Slide 13: Importance of knowledge work in our industry is massively increasing
Importance of knowledge work in our industry is massively increasing R&D expenditures in the automotive R&D cost per car in % Proportion of qualified vs. non-qualified labor in coachbuilding industry [in bill. €] Total R&D expenditures in % (plant Wolfsburg) 175 8,85% 10 7,90% 8,16% 150 8 100 95 125
Slide 14: Workforce transformation at Volkswagen – main fields of action
Workforce transformation at Volkswagen – main fields of action Global & digital Securing the Adaptation and Enabling our people to availability of learning qualification level of our academization of proactively shift content 24/7 workforce across the training occupations towards profit pools board
Slide 15: Re- and up-skilling at Volkswagen AG 2021-2023
Re- and up-skilling at Volkswagen AG 2021-2023 Trafo-Budget Upskilling 5 200 Mio. € >28.000 4 1 for transformation-related Employees 7 3 2 qualifications 6 10 9 8 Reskilling Apprenticeship Locations Volkswagen AG 1 Wolfsburg 7 Osnabrück 2 Braunschweig 8 Zwickau >6.500 Electronics/ IT 3 Salzgitter 9
Slide 16: Systematic re-skilling of traditional professions: from skilled metal worker to vehicle IT specialist
Systematic re-skilling of traditional professions: from skilled metal worker to vehicle IT specialist „VW Automobilmechatroniker“ Flashing of automotive mechatronics control Vehicle 106 Qualification days devices diagnostics Parameteri- zation and co- „Fahrzeuginformatiker“ ding of the SG Safe handl
Slide 17: Re-orientation of vocational training towards future professions
Re-orientation of vocational training towards future professions Breakdown 2022 1.400 Apprenticeships p.a. + 61% since 2015 50 247 AGEBI+ Program Dual study - 50% 200 (Further training) programs in since 2015 future-oriented fields 545 Metal & commercial professions Electronics/ Software/ IT 358 11/
Slide 18: Future professions at Volkswagen
Future professions at Volkswagen New apprenticeship professions New study programs 11/22/2024 18
Slide 19: Wolfsburg & Berlin: A successful, innovative educational concept
43 Wolfsbug & Berlin: A successful, innovative educational concept 37% of former students hold a permanent position in the automotive sector 26% at VW software suppliers (e.g. T-Systems, Capgemini, ETAS..) 11% within the Volkswagen Group Year School utilization in % Students Wolfsburg Berlin Permane
Slide 20: Customized digital learning ecosystem for various job families at Volkswagen
Customized digital learning ecosystem for various job families at Volkswagen Platform Content Metadata PERSONALIZED LEARNING Open Resources ENVIRONMENT Metadata MOBILE JOB- / SKILL-ORIENTED LEARNING EXPERIENCE VW Content WEB APP Business Area Shops 11/22/2024 20
Slide 21: Breaking new ground: introducing battery cell manufacturing in Germany
Breaking new ground: introducing battery cell manufacturing in Germany Chemistry laboratory Skills Skill-Sets Learning survey Hub Learning factory 2023 2024 Qualification 2025 catalog Building expertise through global exchange Status of the qualification catalog available available White spots in de
Slide 22: The great transformation and why it is finally about people
The great transformation and why it is finally about people “The organization of labor is only another word for the forms of life of the common people” 11/22/2024 22
Slide 23: The renewed Group People Strategy as universal codification paves the way
The renewed Group People Strategy as universal codification paves the way 11/22/2024 23
Slide 24: Winning transformation by empowering people!
We need to organize the biggest change in skills and culture in our history Every single person is needed in this massive transformation process We need to stop patronizing employees and offering all-round solutions for every change We want employees who proactively take the path of the future WINNI