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Germany-Volkswagen/Layoff Plan
FILE: Wolfsburg, Germany - Nov 2018 (CGTN - No access Chinese mainland)
1. Aerial shot of Volkswagen headquarters
FILE: Wolfsburg, Germany - Date Unknown (CCTV - No access Chinese mainland)
2. Aerial shot of Volkswagen plant
3. Various of Volkswagen signs in street
4. Volkswagen cars along roadside
FILE: Wolfsburg, Germany - Aug 23, 2016 (CCTV - No access Chinese mainland)
5. Volkswagen factory
6. Various of Volkswagen car assembly line; factory employees working
FILE: Berlin, Germany - Date Unknown (CCTV - No access Chinese mainland)
7. National flag of Germany
FILE: Frankfurt, Germany - Oct 24, 2019 (CCTV - No access Chinese mainland)
8. City view, river, bridge
German automotive giant Volkswagen and employee representatives concluded their five-day intense talks over the company's far-reaching cost-cutting plans on Friday, and agreed on involuntary layoffs or plant closures.
More than 35,000 jobs at the German sites will be cut in a socially responsible manner by the end of 2030, Volkswagen said on Friday evening. The remaining employees are guaranteed job security until then, the carmaker said.
In addition, Volkswagen said that all of its 10 German plants will remain open for now, rather than being closed directly as previously announced. However, two smaller plants will cease car production.
In return for the company's softening of its cost-cutting measures, employees will forego direct wage increases through the end of the decade, with bonuses also set to be cut. The company hopes to save annual labor costs of 1.5 billion euros (1.57 billion U.S. dollars) until 2030.
The carmaker also plans to reduce technical capacity at its German plants by more than 700,000 vehicles.
Faced with declining financial performance and excess capacity at its German factories, Volkswagen proposed restructuring plans to reduce labor costs to maintain global competitiveness, which included 10-percent pay cuts, potential plant closures, and mass layoffs. These measures triggered strong discontent and led to several rounds of strikes by German auto workers.
Volkswagen's predicament highlights broader challenges faced by the German automotive industry, particularly during the transition to electric vehicles. Following the wage agreement reached on Friday evening, Germany's Economy Minister Robert Habeck called for joint efforts to renew and strengthen the industry's competitiveness while accelerating the ramp-up of its e-mobility.
Dirk Grosse-Loheide, a member of Volkswagen brand's board of management, said at a summit in late November that Germany's auto industry lags behind global competitors in innovation and investment, citing high energy and labor costs as significant barriers. Additionally, he pointed to inadequate infrastructure for electric cars and bureaucratic hurdles as major stumbling blocks for the sector.
Germany-Volkswagen/Layoff Plan
Dateline : Dec 20, 2024/File
Location : Germany
Duration : 1'15
FILE: Wolfsburg, Germany - Nov 2018 (CGTN - No access Chinese mainland)
1. Aerial shot of Volkswagen headquarters
FILE: Wolfsburg, Germany - Date Unknown (CCTV - No access Chinese mainland)
2. Aerial shot of Volkswagen plant
3. Various of Volkswagen signs in street
4. Volkswagen cars along roadside
FILE: Wolfsburg, Germany - Aug 23, 2016 (CCTV - No access Chinese mainland)
5. Volkswagen factory
6. Various of Volkswagen car assembly line; factory employees working
FILE: Berlin, Germany - Date Unknown (CCTV - No access Chinese mainland)
7. National flag of Germany
FILE: Frankfurt, Germany - Oct 24, 2019 (CCTV - No access Chinese mainland)
8. City view, river, bridge
German automotive giant Volkswagen and employee representatives concluded their five-day intense talks over the company's far-reaching cost-cutting plans on Friday, and agreed on involuntary layoffs or plant closures.
More than 35,000 jobs at the German sites will be cut in a socially responsible manner by the end of 2030, Volkswagen said on Friday evening. The remaining employees are guaranteed job security until then, the carmaker said.
In addition, Volkswagen said that all of its 10 German plants will remain open for now, rather than being closed directly as previously announced. However, two smaller plants will cease car production.
In return for the company's softening of its cost-cutting measures, employees will forego direct wage increases through the end of the decade, with bonuses also set to be cut. The company hopes to save annual labor costs of 1.5 billion euros (1.57 billion U.S. dollars) until 2030.
The carmaker also plans to reduce technical capacity at its German plants by more than 700,000 vehicles.
Faced with declining financial performance and excess capacity at its German factories, Volkswagen proposed restructuring plans to reduce labor costs to maintain global competitiveness, which included 10-percent pay cuts, potential plant closures, and mass layoffs. These measures triggered strong discontent and led to several rounds of strikes by German auto workers.
Volkswagen's predicament highlights broader challenges faced by the German automotive industry, particularly during the transition to electric vehicles. Following the wage agreement reached on Friday evening, Germany's Economy Minister Robert Habeck called for joint efforts to renew and strengthen the industry's competitiveness while accelerating the ramp-up of its e-mobility.
Dirk Grosse-Loheide, a member of Volkswagen brand's board of management, said at a summit in late November that Germany's auto industry lags behind global competitors in innovation and investment, citing high energy and labor costs as significant barriers. Additionally, he pointed to inadequate infrastructure for electric cars and bureaucratic hurdles as major stumbling blocks for the sector.
ID : 8408846
Published : 2024-12-21 10:26
Last Modified : 2024-12-21 17:20:08
Source : China Central Television (CCTV),China Global Television Network (CGTN)
Restrictions : No access Chinese mainland
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