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VW's Savings Program and Layoffs: Key Messages
2024-09-04 23:55:08
Business
Automotive
Economy

VW's Savings Program and Layoffs: Key Messages

Image courtesy of : AFP (MORITZ FRANKENBERG)

The Volkswagen Group plans a savings program until 2026, with a cost gap of 2-5 billion euros. The Supervisory Board must approve plant closures, and the state government of Lower Saxony is interested in preserving jobs.

Weak sales figures in China and the diesel scandal have cost billions. Criminal proceedings have been initiated against former CEO Martin Winterkorn.

Employees in Wolfsburg and Zwickau are angry and disappointed about the layoffs and uncertain future. The overall sentiment among employees is negative, with resistance from the works council and the IG Metall union.

The crisis in the auto industry is not limited to VW, with Audi facing possible closure of its Brussels plant. Winterkorn is facing trial for his involvement in the diesel scandal and denies the charges.

Despite the challenges, VW remains one of the largest auto manufacturers, with 4.9 million cars produced in Germany in 2023.

Related news on that topic:

Job cuts in the automotive industry: New crisis at VW could also ... NRW partners

Volkswagen is facing a new crisis as the European automotive market struggles to recover from the impact of the COVID-19 pandemic. The company's austerity measures, including factory closures and the termination of job security guarantees, are causing significant unrest among the workforce. Experts argue that these measures are necessary to prevent a full-blown crisis, but union leaders and employees are resisting them vehemently. The German government, including Chancellor Olaf Scholz, has been involved in discussions with VW management and union representatives, emphasizing the importance of the company and the need to protect jobs. However, experts warn against state intervention, suggesting that the company must undergo comprehensive restructuring to improve its competitiveness. The situation at VW is also raising concerns about the state of the automotive industry in Germany as a whole, with fears of job losses and the loss of competitiveness. Other automakers, such as Porsche and Mercedes-Benz, are also grappling with the effects of the crisis. The situation is particularly worrisome for suppliers in NRW, such as Thyssenkrupp, who are already burdened by high energy costs. In order to overcome these challenges, the industry will need to focus on innovation and cost reductions while navigating the structural changes brought about by the shift towards electric mobility.

Struggling German Automotive Industry Faces Declining Sales, ... Electric Cars

The German automotive industry is facing a significant decline in sales, especially for electric cars. The lack of new orders has led to a 'free fall' in the mood within the industry, according to the Ifo Institute. The VW works council is opposing the company's austerity measures, rejecting plant closures and job guarantee cuts. The Federal Motor Transport Authority and consulting firm EY do not see a sustainable recovery in the new car market. In response, the German government is planning to introduce tax incentives to boost the sales of electric cars as company cars. These measures are part of a 'growth initiative' aimed at offsetting the decline in demand for electric cars after the discontinuation of the environmental bonus due to budget constraints. The government hopes that these tax incentives will stimulate demand, as company cars are also important for the used car market. However, critics argue that the new measures primarily benefit luxury company cars. Despite the challenges, the government's goal of having 15 million electric cars on German roads by 2030 remains ambitious.

Read 20 more recent news on this topic

The press radar on this topic:

taz
3. September 2024 um 15:13

VW announces layoffs: Shock in Wolfsburg

Economy
Technology
Politics
The Volkswagen Group is planning a savings program until 2026; a cost gap of 2-5 billion euros; the Supervisory Board must approve plant closures; the state government of Lower Saxony is interested in preserving jobs; weak sales figures in China, missing the transformation to electric cars, the diesel scandal cost billions; criminal proceedings have been initiated against former CEO Martin Winterkorn.
Tagesschau - Wirtschaft und Börsen-Nachrichten
4. September 2024 um 13:22

Trial against former VW CEO Winterkorn rejects allegations

Economy
The former VW CEO Martin Winterkorn rejects allegations in the criminal trial on the diesel scandal; he was not an engine developer and was not informed about exhaust gas manipulation.
zeit
4. September 2024 um 13:21

Diesel Emissions Scandal: Former Volkswagen CEO Rejects Charges

Economy
Former Volkswagen CEO Martin Winterkorn rejects charges related to the diesel emissions scandal; he was not responsible for engine development, emissions control specialists, or software experts, but rather for strategic decisions as chairman of the board; he must stand trial in Braunschweig on charges of fraud, false statements, and market manipulation; Volkswagen had installed illegal software in millions of diesel vehicles under Winterkorn's leadership.
gmx
4. September 2024 um 15:21

Tense atmosphere at VW works council meeting - works council announces resistance

Economy
Finance
At a works council meeting attended by thousands of employees in Wolfsburg, the management of Volkswagen defended the announced austerity measures. The outraged employees responded with a minutes-long chorus of whistles. The works council announced "bitter resistance" against possible plant closures and layoffs.
CW

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