Volkswagen Chattanooga on Tuesday unveiled plans to lay off salaried and administrative personnel at the plant as part of what it termed a global initiative.
The number was described as fewer than 50 people, and no production workers were among those laid off, according to the automaker that employs about 5,500 people in Chattanooga.
Michael Lowder, a Volkswagen Group of America spokesperson, said by phone that the company is making cost savings globally.
“It affects VW around the world,” he said. “It’s not just isolated to Chattanooga.”
Lowder said the company’s global performance program is aimed at driving efficiency and cost savings at VW’s core brand. He said that as with any reorganization, the company is supporting employees through the transition.
Lowder said the layoffs are unrelated to the United Auto Workers win in April in an election to organize the plant’s production staff.
(READ MORE: UAW wins at Volkswagen Chattanooga)
Volkswagen Chattanooga workers in a three-day vote in April overwhelmingly supported UAW representation at the plant.
The election gave the union its first breakthrough win at a foreign automaker in the South.
According to results, 2,628 votes were cast for the union, or 73%, while 985 workers, or 27%, went against the UAW. Some 83% of the eligible 4,300 workers voted, the company said.
Lowder said official negotiations haven’t started yet between the company and the union.
The plant makes the Atlas and Atlas Cross Sport SUVs, as well as the ID.4 electric SUV.
(READ MORE: VW rolls out the ID.4)
Last year, the Volkswagen brand unfolded its global performance program with the aim to make it more efficient and profitable.
A target of a 6.5% return on sales was set with an increase in earnings of about $10 billion in 2026, the company said in a release.
Volkswagen brand CEO Thomas Schafer outlined steps such as streamlining and accelerating administrative processes, increasing efficiency in development and production, streamlining the model range, while reducing the number of equipment variants and further improving product quality, according to the automaker.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.