Volkswagen Group: Volkswagen : Climate Action 100 Visit - Workforce transformation in the Volkswagen Group

Workforce transformation in the Volkswagen Group Dr. Thymian Bussemer Head of Group HR Strategy & Innovation 1 Quantitative Transformation 11/22/2024 2 Occupation at Volkswagen Group: 35 years of constant growth 1990 257.930 165.711 92.219 Total workforce Workforce Workforce in Germany outside Germany 2023 684.025 385.338 298.687 Total workforce Workforce Workforce in Germany outside Germany Source: Volkswagen Group annual reports 11/22/2024 3 Value creation in the automotive industry is shifting towards EV & software - the current workforce structure at Volkswagen does not reflect future "profit pools" ICE-based revenues BEV-based revenues Software-based Turnovers Half of the Group's employees are currently still engaged in direct production activities Indirect 327.027 328.241 296.961 309.129 304.745 243.772 Direct 270.037 204.991 238.675 179.067 2009 10 11 12 13 14 15 16 17 18 19 20 21 Source: K-SPB 11/22/2024 4 Workforce transformation as central strategic objective of Volkswagen for the next decade Product strategy affects needed skills and quantity of work ICE  BEV Software driven products MaaS & TaaS Workforce faces a combination of growth, relocation and downsizing Restructuring programs Roadmap: Digital Transformation New business fields Effective management of wages in the transformation essential Annual labor costs Volkswagen Group 2023 15,5% 322,3 49,7 Turnover Labour costs Volkswagen Group Source: Volkswagen Group annual reports 11/22/2024 5 Growth and decline of professions has always been part of Volkswagens' workforce development IT & R&D Production Sales & Software Marketing 700.000 600.000 Workforce 500.000 400.000 Indirect Workforce 300.000 200.000 Direct Workforce 100.000 0 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Vehicle developer Sales engineer Material scientist Software developer for Battery developer AI system developer driver assistance systems Industrial mechanic Cutting machine Brand Manager Process manager Data Analyst for AI specialist operator Marketing Quality manager Software developer IT security analyst Digital Marketing Data Scientist Manager Customer Relationship Specialists for electric Manager (CRM) car production Embedded Systems Engineer 11/22/2024 6 The rise and fall of professions Job losses and gains in key occupational groups in the automotive industry 2019-2023 in % Occupational safety Legal advice Softwaredevelopment 270 58 Changes in the relevance of individual occupational groups 46 in the automotive industry IT system analysis Vehicle technology Model building R&D Event service, -management -27 -29 -35 -44 35 Relevance decreases (e.g.) • Metal construction & welding technology • Vehicle construction technology • Technical research & development • Warehousing, goods handling • Purchasing & distribution Relevance increases (e.g.) Energy technology IT Software development Chemistry/ Physics Plastics processing Source: Beschäftigungsperspektiven in der Automobilindustrie (prognos) 11/22/2024 7 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 1.576 1.613 1.650 2.265 68 113 217 Golf I Golf II Golf II Golf IV Golf V Golf VI Golf VII 1983 1974 1991 1997 2003 2008 2015 Human Robots Source: Volkswagen Group internal 11/22/2024 8 The current transformation towards BEVs brings a new push in the decline of work volume in our factories Vehicle production in mix ICE & BEV - 12 % Electric powertrain vs. ICE powertrain - 60 % Gearbox in mix ICE & BEV - 70 % Support and enable Provide meaning for work- people in shifting jobs force in traditional field Source: Fraunhofer IAO Decrease in % / FTE 11/22/2024 9 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 professions are becoming less important Future adjustments in occupation depend on overall economic situation and can range between moderate losses of jobs and rapid decline Source: Beschäftigungsperspektiven in der Automobilindustrie (prognos) 11/22/2024 10 Attachments Original document Permalink Disclaimer Volkswagen AG published this content on November 22, 2024 , and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 22, 2024 at 14:33:07.119 .