Reuters - German
carmaker Volkswagen and its powerful labor unions have agreed a turnaround plan
involving 30,000 job cuts by 2021 at its core brand to boost
profitability and
fund a post-dieselgate shift to electric and self-drive cars, a source told Reuters
on Friday.
The agreement
foresees 3.7 billion euros ($3.9 billion) in annual savings at VW's namesake
brand, a step which involves 23,000 job cuts in Germany alone, another source
said.
Labor leaders
agreed to the cuts in exchange for a management pledge to create new jobs and
make investments in electric cars, mainly in factories in Germany.
At the same
time as cutting traditional jobs, the VW brand will create 9,000 new jobs
through investments in electric car technology, the source said.
VW managers
have agreed to build an electric sports utility vehicle at its main plant in
Wolfsburg and a smaller electric vehicle, known as the I.D., in Zwickau, the
first source said.
Electric motors
will be built in Kassel and VW will start battery cell production in
Salzgitter. It will build full battery packs at its plant in Braunschweig, the
first source said.
Volkswagen
declined to comment.
Reuters
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