Volkswagen Delays Saxony Integration by Years Over IT Issues, Still Commits to Full Merger
Economy / Finance

Volkswagen Delays Saxony Integration by Years Over IT Issues, Still Commits to Full Merger

Volkswagen appears to be postponing the planned integration of its Saxon subsidiary by potentially up to two years. According to reports cited by “Handelsblatt”, the decision is anticipated to be made next Monday during the supervisory board meeting of Volkswagen Sachsen GmbH.

A company spokesperson confirmed the delay but was unable to provide a new schedule. The corporation attributed the shift to necessary technical adjustments, particularly within its IT systems, suggesting internal issues with the rollout of an SAP system. Despite the pause, Volkswagen maintains its commitment to achieving full integration.

The merger was originally scheduled for early 2027, a timeline initially announced back in 2021. According to company statements, the postponement will have no material impact on the approximately 10,000 employees. Furthermore, the Saxon unit’s collective agreement and union terms were already aligned with those of the Volkswagen AG headquarters in Wolfsburg at the beginning of this year.

Nonetheless, this announcement comes at a sensitive time. The entire network is particularly scrutinized, with the Zwickau plant facing added pressure following several recent model relocations and operating under strict cost guidelines.