Friday, November 18, 2016

Volkswagen’s brutal slaughter – 30,000 jobs lost – Svenska Dagbladet

Volkswagen’s ceo Matthias Müller. Photo: Philipp von Ditfurth/AP

BONN the Settlement that the senior management team and the club announced on fredagsförmiddagen in Wolfsburg comes after months of fierce battle with the union and the state government of lower saxony, which holds just over a fifth of the shares.

” We have to prevent an uncontrolled wave of layoffs, said the group’s club chairman Bernd Osterloh, who is one of the top names in the Volkswagen.

Volkswagen excludes the layoffs until 2025. Instead, the reductions were carried out with the help of severance, part-time work and workplaces that are not set up when employees retire.

all in all, it was about 23 000 jobs for the Volkswagen brand in Germany and 7 000 jobs overseas. It represents almost 5% of the total of 624 000 employees. In Germany affected almost one-fifth of the employees.

In the so-called framtidspakten, that the settlement has been named, are also included the creation of 9 000 jobs in new areas like e-mobility and digitisation. At the same time planned in the coming years investments of € 3.5 billion, particularly in e-mobility.

The first the electric cars will be manufactured at the German factories in Zwickau and Wolfsburg and not abroad that management had proposed. This was one of the club’s key requirement.

– We ensure that all of our German factories are at the forefront of the next generation of electric cars and the future cars are built in Germany and not abroad, said the convening shop stewards Bernd Osterloh.

Herbert Diess, head of the Volkswagen brand, pointed out that Volkswagen is going to invest massively in new technologies and build a pilot plant for battery cells and cellmoduler in Salzgitter. The factory in Kassel to become the centre of Volkswagen’s electric motors.

– We see that Volkswagen is prepared for the great transformation in the automotive industry, ” said Herbert Diess, and warned that a storm draws in over the industry.

Re-launch as a group- and the company’s management now conjures up comes in the wake of dieselskandalen that has corrupted the Volkswagen’s international reputation and forced the company to make provisions of more than € 18 billion.

Volkswagen, which has 120 000 employees in Germany also suffer from low profitability, low productivity, cumbersome decision-making and a hierarchy which, according to critics, the brakes of innovation.

Among the major manufacturers, the Volkswagen the absolute worst profit margin, ” concludes bilexperten Ferdinand Dudenhöffer at the Center Automotive Research.

While Toyota and Ford earned slightly more than eur 1 600 per car sold during the first half of the year pulled the Volkswagen into just 801 million. The profit margin of 4.5 percent in the car production was just over half as high as that of Ford, GM and Toyota.

Among the less premiumtillverkarna is the own koncerndottern Porsche unbeatable, with a margin of 16.7 per cent and a gain of 15 641 euros per car.

in Order to catch up with rivals in the world market makes the Volkswagen now of unprofitable sectors such as the manufacture of plastic components in Braunschweig.

Priority is also the fight against bureaucracy and hierarchy. In total, the costs will be lowered by eur 3 billion in Germany and € 700 million in the foreign factories. The management expects an improvement of productivity by a quarter by 2020.

– The coming years will be very, very exhausting, ” stated Herbert Diess.

Critics warn, however, that everything hinges on austerity truly and to the rigid bjässen becomes lättrörligare and faster.

In a comment writes the business daily Handelsblatt that they have seen many reform proposals come and go. "They became watered-down, softened or forgotten. What was left was the fine promises, but in reality you saved nothing."

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