Volkswagen is facing fierce competition in the electric car market. The German brand is going through a difficult period in which layoffs and project abandonments are to be considered. Will the brand really lay off 30,000 employees?
Is Volkswagen entering a crisis? The German brand, which is one of the largest automobile manufacturers in the world, is going through a difficult time. Volkswagen has been overtaken in China by BYD and remains in third place in the global electric car market. The German group is struggling to make its investments profitable.
According to information from our colleagues at Manager MagazineVolkswagen CEO Oliver Blume is reportedly considering cutting wages, with talk of cutting 30,000 jobs in Germany.
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The most impacted activity would be research and development. Of the 13,000 jobs in this sector, 4,000 to 6,000 could be eliminated. Volkswagen has abandoned the agreements guaranteeing the sustainability of jobs until 2029 in 6 of its factories. A decision that is in line with layoffs.
Savings are needed
Volkswagen must reduce investments by 20 billion euros, from 180 to 160 billion euros, according to the words of Arno Antlitz, the group’s financial director. In this dynamic, projects could be abandoned.
This is particularly the case with the MEB platform update project dedicated to electric vehicles. The MEB+, which could have extended the career of the Volkswagen ID.3 and ID.4, may not come to fruition. By abandoning the MEB+, Volkswagen would like to accelerate the arrival of the SSP platform. This should arrive in 2028, already three years late.
But be careful, because according to information fromEuro Newsa Volkswagen spokeswoman clarified that the manufacturer does not confirm the figures given by Manager Magazine, particularly the part concerning job cuts.
However, the same spokesperson said: ” Volkswagen must reduce costs at its German sites. This is the only way for the brand to earn enough money for future investments. How we achieve this goal in cooperation with workers’ representatives will be part of the upcoming discussions.« .
Volkswagen also did not confirm the comments of analysts from the investment bank Jefferies who suggested that the German manufacturer could close 2 to 3 production sites, threatening 15,000 jobs. A statement that is not surprising when we know that Volkswagen’s factories are not operating at full capacity.
Source: www.frandroid.com
