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Volkswagen Offers Voluntary Early Retirement to 2,300 India Plant Workers

The union-requested plan aims to right-size underused factories while keeping production running.

Overview

  • Skoda Auto Volkswagen confirmed a voluntary early-retirement scheme covering all blue-collar staff at its Chakan and Aurangabad plants.
  • Eligible employees are offered 75 days of pay for each year served or remaining until retirement, whichever is lower.
  • Workers who opt in within a 5–10 day window will receive an additional payout to encourage quick acceptance.
  • The company says the move will align manpower with current needs and help maintain competitive wages without shutting the facilities.
  • The plants build models including the Skoda Kushaq, Volkswagen Virtus, and Audi Q3/Q5; the group continues to seek local partners and is contesting a reported $1.4 billion import tax demand.