Volkswagen accelerates electric vehicle push

Volkswagen accelerates electric vehicle push

Volkswagen (vlkpf) is to cut up to 7,000 jobs by 2023 so that it can increasingly focus on electric vehicles and production automation.

Ralf Brandstätter, Volkswagen's chief operating officer, said that the company needed to "do more to meet the challenges" the company is facing in the upcoming years, adding that the changes would make Volkswagen "fit for the electric and digital era".

The Wolfsburg-based company said Wednesday that the Volkswagen brand can cut the posts by not recruiting replacements for employees who retire, and so it can carry out "restructuring along the demographic curve". The company works council has warned VW's management against treating administration and production workers differently in offering the possibility of semi-retirement.

This comes as its latest earnings revealed the operating margin at its core brand had taken a hit from new emissions tests. Diess, who also heads up the VW brand, has been axing slow-selling models and vehicle variants to reduce complexity.

More news: Lawyer told Cohen he could 'sleep well' after talking to Giuliani: emails
More news: India vs Australia 5th ODI
More news: Sarah Sanders spars with CNN’s Jim Acosta over anti-Semitism allegations

VW signed a labour pact in 2016 to cut 30,000 jobs worldwide and generate €3bn in annual savings.

Even as some positions are cut, bosses expect to create 2,000 new jobs in electronics and software development to shape the firm's reorientation, and said they would uphold a job security guarantee valid until 2025. Further measures will include lowering material costs and lifting productivity at its factories by 5 percent to achieve an operating profit margin of 6% in 2022.

The first electric auto on the platform - the "ID" - will hit showrooms in 2020 and VW expects the launch edition to sell out, VW's board member for sales Juergen Stackmann said.

Related Articles