Friday, November 18, 2016

Future Pact: VW sweeps of 23,000 in Germany – Handelsblatt

Volkswagen: the”future Pact”: saving in new technologies

WolfsburgVolkswagen to flow want to pipe in the coming years, its investment. Up to the year 2020, the investment rate should be lowered to six percent, said VW on Friday following a meeting of the Supervisory Board. In 2015, the rate had stood at 6.9 per cent. Based on the sales in the Automotive division at the time, around 12.7 billion Euro. However, in absolute Numbers and Planning figures for several years – how it used to be – no longer want to call the group in times of diesel gate, and the profound upheaval in the auto industry.

Volkswagen wanted to put the necessary financial resources in the Trends of electric mobility, digital networking, or new mobility services, said VW chief Executive Matthias Müller. “At the same time, we invest more prudently and set clear priorities.” Müller had already ushered in a short-pay after his departure, a departure from the standard in the industry race for the highest sales. “Overall, the group is not fixed policy in such a way as with the paragraph on the big Numbers, but it is more looking at quality instead of quantity,” said a VW spokesman. A few years ago, the group called for an investment volume of more than EUR 100 billion for the next five years.

With the removal of 30,000 outlets worldwide, and a profound conversion to make the car manufacturers fit for the tougher competition in the coming years. At the German locations, the return of a weak main brand, VW will be eliminated 23,000 jobs and about one fifth of the Set, however, especially through attrition and retirement, such as VW brand boss, Herbert Diess on Friday, said in Wolfsburg. At the same time, 9000 new Jobs should be created in the Software development.

Volkswagen builds: A historic moment for VW

the management Board and the works Council of VW have your savings package with drastic cuts for the German sites is presented. However, the success is not guaranteed. A Procrastination can no longer afford VW. A Comment. more…

the so-called “future Pact”, the operating profit at VW should be improved by 2020, 3.7 billion euros in the year, the group announced on Friday. Three billion euros to the German locations and 700 million euros abroad should be saved. The Handelsblatt had reported Friday morning on the key points of the agreement.

“Volkswagen needs to quickly earn money for the coming storm guard,” said Diess. Works Council chief, Bernd Osterloh, emphasized that the workers operating in the exclusion-related notices of termination have been agreed until the end of 2025. “That’s nine years without fear of the workplace,” he said. It hurt, however, that many temporary workers would no longer busy.

return a weak main brand of the Volkswagen group is also under the pressure of the diesel scandal, and billions of high investments, a drastic times. The flag ship engaged in the world in around 30 locations currently, more than 200,000 employees, of which 114.000 in Germany. With the so-called “future Pact”, the annual operating costs are expected to fall by 2020 to 3.7 billion euros. Three billion euros to the German locations and 700 million euros abroad should be saved.

savings programs at Volkswagen

  • In the year of the inauguration of the later VW Patriarch Ferdinand Piëch as Chairman of the Board, the group is in a deep crisis. He produced, in comparison with the global competition, it’s too expensive, it is the dismissal of 30,000 employees.

  • Peter Hartz, Piëch is set, the personnel Board and later developer of the labour market reforms of the Schröder government, can prevent the bald spot. He leads in close consultation with the works Council and the IG Metall, among other things, the Four-day week at Volkswagen – a reduction of working time without wage compensation. Also, the controversial “cost killer” and Ex-General Motors-Manager José Ignacio López brings the loss of the group reach financially back on track.

  • The main Volkswagen brand Cars in a chronically low yields – a clear Parallel to today’s situation. After months of negotiations on the new collective bargaining agreement in the case of VW, the parties agree on a departure from the Four-day week. As consideration for the significantly longer working hours without wage compensation, the IG metal demanded by the company binding Commitments for the long-term future of the six West German plants.

    After the core brand boss Wolfgang Bernhard has threatened with job cuts and relocation of Production, he leaves the group. VW can, nevertheless, reduce the cost and increase competitiveness.

  • After years of profits, bobs the brand with the VW Emblem in terms of margin (percentage of profit on sales) compared to the industry again. At the same time, the group needs to digest the billions of loads of the exhaust gas scandal and more on the topics of the future of the industry focus.

  • The “future Pact” is, therefore, the pressure to the tag in the direction of E-mobility Digitization and services, as well as the interest of the workforce to secure Jobs and sites in the Balance. After months of wrestling: This will not go without concessions at the Jobs. 30.000 Points not to expire until 2020, and terminations.

The productivity of the German plants is forecast to rise by 25 percent. Management and the works Council had struggled for months to the agreement. The last CEO Matthias Müller’ve hit the node, said Osterloh. From the previous savings program of around 2.5 billion euros according to insiders to cost reductions. VW wants to increase the fitness program, the operating return on sales up to 2020, to four per cent, compared to the current state that is about a doubling. Under the pressure of the diesel scandal, Volkswagen intends to drive to the middle of the next decade, the sales of new electric cars quickly.


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