Volkswagen announces to 30,000 layoffs

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For the Volkswagen Group working 624.000 people all over the world, of which about 114,000 fewer employed within Germany and only for the main brand. Many of them are going to lose their jobs, around 23,000 people. At the global level will be 30,000 employees, the rest of those affected will be in different countries in America, such as the united States, Brazil or Argentina.

Fortunately for the domestic industry, the plant navarra de Landaben, manufactured in a european exclusive, the Polo, will not have to cope with this cut. The address of Volkswagen is looking at how to save more money and achieve greater efficiency in order to raise the profit margin. Only in Germany is going to eliminate a lot of “redundancies” in the manufacturing process.

Volkswagen as a brand is, in reality, not very profitable, something that compensates with a global volume of several million units per year. The 2% current want to get to a level of 4% by the year 2020, that is to say, you have to double the benefit. A large part of that profit is going to burn in fines, lawsuits and sanctions, primarily by the scandal of the emissions of oxides of nitrogen (NOx) from diesel engines. In Europe, for the moment, there are only call costs to fix more than 8 million vehicles and trials spot that Volkswagen starts to lose.

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Before the scandal, the Volkswagen Group was one of the main global investors in r & D. Now is a manufacturer that needs to increase the efficiency of their processes, but are also leaving businesses less profitable or without a return clear. Volkswagen has dropped out of the championship rallies (WRC) and Audi has abandoned the world endurance (WEC).

Only by these layoffs, early retirement early, and the reduction of temporary jobs are intended to save 3,700 million euros each year. The biggest cut occurs in Germany, where labour costs are higher, especially in comparison with Spain, the Czech Republic, Poland, Portugal or Slovakia, where the Group has other factories.

yes, the manufacturer has promised that will create up to 9,000 jobs of high qualification, mainly related with the electric cars. Volkswagen wants to increase of the wild the amount of electric cars and plug-in hybrids that put on the street by 2025, around a quarter of what they sold then.

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Volkswagen loses ground in Europe

From January to October 2015, when the scandal had not noticed anything, the Group sold 25.3% of the cars registered in the European Union and the countries of EFTA (Norway, Switzerland and Liechtenstein). In the same period of 2016, this share has fallen to 24,9%, a fall of 0.4 points.

Although the Group remains responsible to enroll one of every four passenger cars in the EU, and therefore has an enviable position, lose ground, while his rivals earn it. For example, General Motors has risen to 2.7% of their sales, and this manufacturer will still win money in 2016 due to the losses caused by the announcement of “Brexit”.

The market grows, but Volkswagen does not. While SEAT, Skoda and Audi manage to profit, Volkswagen and Porsche have a loss in sales. The impact of the “Dieselgate” is not being as hard as some predicted, but it obviously hurts a lot.

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Only in the united States Volkswagen has provided almost 17,000 million euros to cope with the consequences legal and economic of have misled environmental authorities, selling cars that only comply with the regulations in laboratories. Among those consequences is the “eaten” hundreds of thousands of cars and send them to the scrapyard, that after compensating the owners.

The technology TDI will come out quite expensive at the Volkswagen Group, although if we consider the business results from that came the first engine, more than 25 years ago, we would still be talking about net profit. Volkswagen has to recover by betting hard for the electrical technology.

plants German, Zwickau, Wolfsburg and Dresden will produce electric cars. Other plants to supply components for these cars: Kassel will produce electric motors, while Salzgitter and Braunschweig will be batteries. Volkswagen is not going to fall, but until the giants were hurt shock.