Volkswagen to close its design centre in Potsdam outside Berlin

German car manufacturer Volkswagen intends to close its design centre in Potsdam just outside Berlin.

"The function of the centre as a future lab for new technologies – such as those around electromobility and the associated new customer ecosystem – has been gradually integrated into the regular innovation processes of the Volkswagen Group's brands," a spokeswoman for Volkswagen Group Services said on Wednesday.

"The operational business of the Volkswagen Group Future Centre Europe will consequently be discontinued by the end of 2024," she said.

Some 100 employees are affected, dpa has learnt.

Volkswagen Group Services said they would not comment on the upcoming discussions with employee representatives before they are concluded, the spokeswoman stated. All activities within the Volkswagen Group are being reviewed.

The originally envisaged role of the Volkswagen Group Future Centre Europe GmbH in Potsdam as a future lab for vehicle design and the digital user experience around the company's vehicles has now been integrated into the series development of the group's brands.

The IG Metall union announced a protest rally for next Monday.

The centre in Potsdam is, alongside the centre in the northern city of Wolfsburg where VW is headquartered, the second of its kind within the car group. This is where research vehicles as well as future visions and prototypes are created.

"We expect the group to engage with the employees as soon as possible and to start the discussion about a changed course," stated the union.

The company's works council supports the workers from the centre in Potsdam, according to a spokesman. The centre falls under the responsibility of the subsidiary Volkswagen Group Services, where unlike in the parent company Volkswagen AG, there are no employment guarantees. "We explicitly welcome the call for the rally," he said.

The design centre was opened in 2005 and later restructured and renamed. After the restructuring, it was considered the world's largest future workshop of the group.

Potsdam Mayor Mike Schubert told the local news website Potsdamer Neueste Nachrichten on Wednesday that the departure would be "an absolute loss" for Potsdam, as the city works together with the VW Group and the centre.