Tue. Apr 23rd, 2019

Volkswagen will abolish between 5,000 and 7,000 jobs until 2023 in its commitment to the electric car | Economy

Volkswagen will abolish between 5,000 and 7,000 jobs until 2023 in its commitment to the electric car | Economy



The main brand of Group Volkswagen, Volkswagen-It has the same name-, it will eliminate between 5,000 and 7,000 jobs by 2023 in the framework of an adjustment plan that aims to finance important investments in the autonomous electric car, according to the company announced on Thursday. "Due to the automation of routine tasks, the company starts from the principle that between 5,000 and 7,000 jobs will disappear by 2023," the VW statement said. This Tuesday, the Volkswagen Group, the world's largest vehicle manufacturer, already warned that the conversion to the electric car would involve job cuts. During the presentation of the 2018 results of the consortium, Herbert Diess, its president, said: "The reality is that building an electric car involves 30% less effort than one powered by an internal combustion engine." And he concluded: "That means we will need to make job cuts."

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The abolition will be carried out by not replacing workers who retire, according to the company's note, which has also announced another investment of 8,000 million euros by 2023 in "topics of the future", especially in electrification. of its models and autonomous driving. In total, VW will invest 19,000 million euros between 2019 and 2023. The number of employees eligible for early retirement will be 11,000. At the same time, the brand has announced the creation of 2,000 new jobs in technical development, such as electronic architecture and software. VW has given its employees job guarantees until at least 2025, so it can not apply forced dismissals until then.

Also, last November, the group Volkswagen announced that it will spend 44,000 million euros in five years for the manufacture of electric and autonomous cars, as well as in other mobility services and in the digitization of their vehicles and factories. The chairman of the Supervisory Board of the world's largest automaker, Hans Dieter Pötsch, said at a press conference that the company seeks to become "a global provider of sustainable mobility."

The cuts announced this Wednesday are in addition to a restructuring program already under way that aims, by 2020, to reduce 21,000 jobs in the company's factories worldwide. According to data from the Volkswagen Group, In 2017, the number of employees grew by 2.5% with respect to the previous year, which in gross terms is equivalent to almost 13,000 more workers. In total, there are some 642,000 people working in the car industry around the world, of whom almost half, 45%, work in Germany.

This Tuesday, Herbert Diess hinted that the reduction of staff could not be assumed only by natural losses or partial retirements. In Roman paladino, the automotive industry is facing a period of layoffs. The announcement coincided with the announcements that the group, owner of 12 different brands that cover from the utility (Volkswagen, Seat, Skoda) to the supercar vehicle (Bugatti and Lamborghini), It will redouble its commitment to the electric vehicle and that last year it gained 2,153 million euros, 6% more than in 2017.

At the same time, the VW brand will create 2,000 new jobs in technical development, such as electronic architecture and software.

Volkswagen has given its employees job guarantees until at least 2025, so it can not apply forced dismissals until then.

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