Final week, it was reported that VW was as much as three billion euros in need of its financial savings goal. German publication der Spiegel now writes that “there may be at present a spot of 4 to 5 billion euros within the monetary plan of the Volkswagen and VW Business Autos manufacturers.” There are a lot of causes for this, together with greater materials costs, the weak point of the US market and the cheaper tools that prospects are at present ordering through the financial downturn – however margins are significantly excessive for non-obligatory extras.
Moreover, the journal writes that the comparatively low revenue margins of electrical vehicles are additionally an issue for the producer. In complete, huge quantities are lacking. Model boss Thomas Schäfer additionally admitted as a lot at a administration assembly on Monday. Additional financial savings are wanted to guard the model from losses.
“The fee-cutting programme at VW is escalating and resulting in a significant battle between administration and the Common Works Council,” wrote the Works Council on Monday. In line with the Works Council, the model administration board has cancelled a minimum of one main car plant and one element manufacturing unit in Germany. Product commitments which have already been made are additionally prone to be cancelled, resembling a compact-class electrical SUV deliberate for 2026 from the Wolfsburg plant.
VW itself has additionally confirmed that it’s “cancelling the job safety settlement that has been in place since 1994.” The present settlement would have run till 2029. In different phrases, devices resembling early retirement, partial retirement or termination agreements are not ample to slowly cut back the workforce. Within the present scenario, plant closures can’t be dominated out ‘with out speedy countermeasures’. The scenario is “extraordinarily tense and can’t be overcome by easy cost-cutting measures.”
Nonetheless, it’s not but identified the place VW intends to chop again. In view of the involvement of the state of Decrease Saxony, the native vegetation in Wolfsburg, Hanover (VW Business Autos) and Emden in addition to the element vegetation in Brunswick, Salzgitter and Osnabrück are literally thought of untouchable. That leaves the MEB plant in Zwickau, the Clear Manufacturing facility in Dresden and the element plant in Kassel. Over 26,000 persons are employed in Kassel, Dresden and Zwickau.
The smallest car plant with 8,500 staff in manufacturing is situated in Emden – the ID.4 and ID.7 are constructed there, and Emden will turn into an completely battery-electric automobile plant from 2025. Nonetheless, the German state of Decrease Saxony has to this point protected the positioning with its 20 per cent voting rights. There have been repeated rumours of a potential sale of the Osnabrück parts plant with its 2,300 staff – however not of a closure. The truth that Audi is overtly discussing the choice of closing its manufacturing unit in Brussels was already seen as a turning level. This was beforehand unthinkable for Germany however is now being mentioned nonetheless.
The VW Works Council hardly ever holds again from criticising the administration and is now selecting very harsh phrases. “The Board of Administration is questioning nothing lower than your entire VW core model. We is not going to enable ourselves to be wound up right here,” mentioned Works Council Chair Daniela Cavallo, saying “fierce resistance from the worker aspect.”
spiegel.de, automobilwoche.de (each in German)