VW brand to slash workforce by 7,000

15 March, 2019, 00:40 | Author: Eric Barnett
  • 2020 Volkswagen Golf spy shots- Image via S. Baldauf  SB-Medien

The VW brand accounts for about half of VW Group's global deliveries. VW has been pushing to rein in bloated expenses to lift profitability that is trailing rivals. That was ambitious in itself, given that it made fewer than 50,000 battery-only vehicles a year ago. Volkswagen's chief executive officer, Herbert Diess, explained during the recently held Capital Market's Day that building fully-cars as opposed to electric and combustion drivetrains is a much more efficient approach. Further measures will include lowering material costs and lifting productivity at its factories by 5% to achieve an operating profit margin of 6% in 2022.

Volkswagen has ruled out compulsory layoffs until 2025, but early retirement of staff working in administrative positions at the company's headquarters in Wolfsburg, Germany, will help reduce the workforce by 5,000 to 7,000, it said. To cut down on cost, the company is reportedly in negotiations with Ford Motor Corp for a collaborative effort to develop technologies for commercial electric vehicles and autonomous driving systems.

Back in 2016, VW had launched the last major savings program that will run until the end of next year.

At least for now, any jobs cuts will be voluntary. He also urged a draft labor pact on retraining employees for software and digital operations, Osterloh told Bloomberg in an emailed statement.

2020 Volkswagen Golf spy shots- Image via S. Baldauf  SB-Medien
New VW Golf Reveal Delayed Until Late 2019

For this year, the VW nameplate targets revenue growth of as much as 5 percent and an operating return on sales between 4 percent and 5 percent.

At the same time, VW plans to increase investment in "future issues" to 19 billion euros by 2023, 8 billion euros more than originally planned. The company confirmed that it will start taking European orders on its I.D. Hatchback model this coming May 08. VW's pursuit of a dedicated format rather than a more flexible one emulates e-car pioneer Tesla.

Volkswagen has set a goal to cut the Carbon dioxide footprint of its vehicle fleet by 30 percent by 2025.


Recommended:



Popular

Australian man survives bow-and-arrow attack by using cellphone as shield
The incident began when the attacker, carrying a bow and arrow, confronted the man outside his house, police said. He was charged with intent to commit an indictable offence, assault causing bodily harm and malicious damage.

$448 million up for grabs in Wednesday’s Powerball drawing
But if you were to beat the long odds and hit the jackpot, you'd have an important decision to make: cash or annuity. Mike Weirsky, who won $273 million in a drawing last week, initially forgot the jackpot ticket at the QuickChek.

Unvaccinated children in Italy banned from preschool under new law
Andrew Wakefield that linked measles vaccine to autism, there has been rise in anti-vaccination sentiments among parents. Children under age six will be excluded from nursery and kindergarten without proof of vaccinations under the new law.

Justin Bieber asks fans for prayers amid depressive episode
Justin Bieber is asking fans for prayers after going through a hard time. Justin Bieber is apparently going through a rough patch. The caption read in part, "been struggling a lot".

Messi Hails Ronaldo's 'Magical' Night Against Atletico
The last-16 tie between Barca and Lyon was evenly poised following last month's goalless draw in France. He's a genius and can do things that nobody else can.

Milner hails 'on fire' Mane as Liverpool march on in Europe
I don't want to speak about it really. " Liverpool are a top team in Europe and they showed us our limits". The opponent attacked us very high and left no spaces, that made it hard for us.

Former British soldier charged over 1972 'Bloody Sunday' killings
A public inquiry found that British troops fired first and had given misleading accounts of what happened. Papers before prosecutors included 668 witness statements and numerous photos, video and audio evidence.

Release bid fails for Vietnamese woman in Kim Jong Nam murder
Vietnamese ambassador to Malaysia , Le Quy Quynh, told AFP at the court: "I'm very disappointed that the court did not free Doan". He also sought a deferment of the trial, saying Huong has been unwell since Aisyah's release and is not in a position to testify.

Spotify Hits Apple With Antitrust Complaint in Europe Over App Store
And after Warren, it is Spotify who is chanting the same slogan - Apple is trying to eliminate competition. We aren't even allowed to tell you something as simple as how and where to upgrade to premium via the app.

[H]ardOCP: Huawei Caught Using DSLR Shots in P30 Marketing
Previous leaks suggest that the Huawei P30 Pro may come with a four camera setup and this time the fourth sensor is ToF 3D sensor. The Huawei BAND 3e uses a new Footwear Mode: an application that provides precise running data with the press of a button.