Volkswagen brand to cut up to 7,000 jobs in new savings drive

Volkswagen Golf 3

The German auto giant said about 11,000 of its employees will be eligible for retirement in the coming years, and it expects to achieve the bulk of the cuts through attrition.

Volkswagen has struggled to raise profitability at the VW brand for years.

A Volkswagen badge on a production line at the Volkswagen plant in Wolfsburg, Germany, March 1, 2019.

The job cuts will be part of a savings drive aimed at slashing costs by 5.9 billion euros per year by 2023 at VW's own-brand division.

The vehicle maker announced. At the same time, the carmaker will create some 2,000 new jobs in Technical Development, more specifically in electronics architecture and software.

Volkswagen announced this week a plan to eliminate up to 7,000 jobs at its namesake brand.

Chief operating officer of the VW brand Ralf Brandstaetter said in a statement the changes would "make Volkswagen fit for the electric and digital era".

As a result of the electric cars model ramp up, Volkswagen expects to build 22 million cars on its electric vehicles platforms PPE and MEB by 2028, up from the carmaker's previous estimate of 15 million cars.

The company is pivoting to electric vehicles as it seeks to comply with new limits on carbon dioxide emissions in Europe, and a push by China for more low-emission vehicles.

But the enormous investments needed are already weighing on performance and profit margins.

The cuts are meant to lift the brand's profit margins to 6 percent, up from 3.8 percent a year ago.

The new losses come on top of previously announced plans to cut the company's global workforce by 30,000 by the end of next year.

Related News:



Most liked

Governor: 2 attackers kill 8, themselves at Brazil school
A student reacts in front of the Raul Brasil school after a shooting in Suzano, Sao Paulo state, Brazil March 13, 2019. Latin America's largest nation has the largest number of annual homicides in the world, but school shootings are rare.

Ravens to sign RB Mark Ingram to 3-year, $15 million deal
In the two seasons prior, Ingram rushed for 1,000 yards in each - with 18 rushing touchdowns - and had 104 combined receptions. Former Vikings quarterback Teddy Bridgewater is expected to re-sign with the Saints, according to the NFL Network.

Ex-Trump chief gets 43 more months in jail
She said the issue of Russian conspiracy was not presented in the case and "therefore it was not resolved". At trial in Virginia in August, a jury found him guilty on eight counts and deadlocked on 10 others.

BTS Announces New Album, 'Map of the Soul: Persona'
The original comeback for BTS was initially scheduled to begin in May, but that start date has been pushed to an earlier date. Set to kick off in May, the boy group will tour cities in Asia, Europe, and the United States.

Iran's Rouhani begins official visit to Iraq, hopes for better trade ties
Iran is now Iraq's top trade partner, with an annual turnover of about $13 billion, which they hope to increase to $20 billion. Iran's former hard-line President Mahmoud Ahmadinejad became the first Iranian president to visit Iraq on a trip in 2008.

Priyankas priceless reaction to Jonas Brothers Sucker topping Billboard charts
She is back in America after a shooting a schedule of her Hindi film The Sky Is Pink and attending Akash Ambani's wedding. My heart is so full of gratitude. "I'm so proud of you, baby", she wrote for Nick and also tagged Kevin and Joe Jonas .

Pakistan Wants 'Responsible' Troop Withdrawal In Afghanistan
The ongoing peace process in Afghanistan also came under discussion during the meeting of the two foriegn ministers. But, in a statement, he stressed that no agreement was reached on a ceasefire or talks with the Afghan government.

Arrest Made In Death Of Little Black Girl Found In Duffel Bag
One of the workers told KTLA that they were trimming trees in the area when they noticed a duffel bag . A GoFundMe page created by Trinity's uncle describes her as "a very loving and caring little girl".

Researchers wake up cells from mammoth frozen for 28,000 years
Following the procedure, the scientists reported a "pronucleus-like structure budded from the injected ... mammoth nucleus". However, reviving the mammoth would require cells to divide and multiply, and the team did not achieve this process.

49ers, Chiefs agree to terms on Dee Ford deal
For the Chiefs, the second round pick in 2020 won't do anything to help them rebuild a defense that also lost Justin Houston . He had no sacks or tackles in the Chiefs' AFC Championship Game home loss to the New England Patriots .

Israeli forces seal off Al-Aqsa gates, assault worshipers
During the searches, the police said they found several containers of flammable materials, firecrackers and Molotov cocktails. According to Israel's agreement with the Waqf, Jews may visit the holy site but are barred from praying.

Madison Students Plan to Join International Climate Strike
It was created by a group of strikers as a follow-up to the climate strike, as we wanted to make a difference, not only through protest but also through the electoral system.

Apple confirms March 25th event, says "It’s show time"
That deal helped the firm launch Apple Music, so we shouldn't completely rule out a similar transaction for its video streamer. The company has partnered with several publications like The New York Times, Washington Post , Wall Street Journal , etc.

Stephen Colbert and Jimmy Kimmel Do EXACT Same Mitt Romney Twinkie Joke
The Republican representing Utah posted photos and video from the surprise moment Tuesday, celebrating his 72nd birthday. He pulls each candle out of the cake, blowing them out individually while holding the discarded candles in his hand.

Republicans Maneuver to Save Trump From an Embarrassing Vote on Emergency Declaration
The White House and Republican senators are seeking compromise on a plan to limit future presidential powers to unilaterally declare national emergencies.