VW May Axe 30,000 Jobs

[buzzsaw_23]

VW may axe 30,000 jobs

David Gow in Frankfurt
Tuesday September 13, 2005
The Guardian


Volkswagen, Europe's largest carmaker, could axe up to 30,000 jobs or almost a third of its German workforce in a drive to cut costs and boost profits launched yesterday by Wolfgang Bernhard, the new head of its loss-making VW brand. The news came as rival carmaker Ford received a boost with the $15bn (£8bn) sale of its Hertz car rental business.

The potential job losses at Volkswagen are three times higher than initial estimates set out by Mr Bernhard and chief executive Bernd Pischetsrieder and would result from the wholesale outsourcing of component-making from VW plants, such as Kassel and Hanover.

Launching a new fuel-efficient convertible coupé, the Eos, at the international motor show, Mr Bernhard said the figures had been "plucked out of the air". But insiders said they were mentioned seriously in internal planning documents. VW, traditionally a pioneer in cost-cuts without large-scale redundancies, has told its 103,000-strong German workforce it wants to reduce personnel costs by 30% by 2008.

Last year it signed an agreement with unions that, in return for a temporary wage freeze, there would be no compulsory lay-offs until 2011. But it is now seeking thousands of job cuts through early retirement, part-time working and voluntary severance to save about €1bn (£673m). Mr Pischetsrieder has indicated the agreement could be renegotiated.

http://www.guardian.co.uk/germany/article/0,2763,1568772,00.html

[RedRocco]

1. maybe

the decision to move up-market was ill advised? seriously who is going to buy a $110k VW? (phaeton)
time to change the company name from Volkswagen to Elitärerwagen

[ReadTomPaine]

2. One look at the JD Powers surveys will make the reason for this clear.

VW has been producing problem automobiles for over a decade. They rank 4th to last in quality. Nice cars, but very poorly screwed together and with hosts of electrical problems. Audi and to a certain extent Mercedes Benz have also been experiencing these problems.

http://www.jdpower.com/news/releases/pressrelease.asp?ID=2005069

[LeftyMom]

3. My sister's Mercedes is always in the shop

Weren't european vehicles once reputed to be reliable? No wonder Dad got a good deal on that marvel of German technical know-how :eyes: I'm sure the previous owner was thrilled to be rid of it.

[Cessna Invesco Palin]

8. The unholy union of Chrysler and Mercedes...

...has destroyed the latter brand.

[jayfish]

9. No They Both Have Sucked Pretty Well On Their Own.

That comes from owning lots of Chryslers and reading JD Powers surveys since before the merger.

Jay

[Cessna Invesco Palin]

7. Audi is owned by VW.

As are Seat and Skoda. (For those not familiar with European car brands, Seat is a Spanish brand aimed at the sport/youth market, and Skoda are low-cost family cars.)

[sendero]

10. Exactly..

.... Volkswagen makes some really cool cars, the Passat and the Jetta would be GREAT if they weren't among the most unreliable cars currently being made.

We almost bought one, I'm glad we looked at carsurvey.org first.

[Tight_rope]

4. Well...I keep telling people they just don't make them the way they use to

[dweller]

5. Bring back the air-cooled, flat four!

since i've 2 in the yard, and need parts that are just about unavailable...

dp

[Kellanved]

6. fascinating indeed

I guess this is a remainder on who owns a big stake in VW: the German state of lower saxony, which has -surprise - a conservative PM.
This headline has to be seen in the context of the election next Sunday.

Just remember that VW believes it to be a good idea to sell the €1Million Veyron under its construction price.
The incompetence is fantastic: they slept past the hybrids (they could have gotten the know-how for free from public research facilities). They slept past low-emission Diesels.
And now the workers have to pay for expensive adventures like the Veyron or the Phaeton with their jobs.