Published: Fri, March 15, 2019
Business | By Eloise Houston

Volkswagen to shed up to 7,000 jobs through automation

Volkswagen to shed up to 7,000 jobs through automation

Volkswagen has ruled out compulsory layoffs until 2025, but early retirement of staff working in administrative positions at the company's headquarters in Wolfsburg, Germany, will help reduce the workforce by 5,000 to 7,000, it said.

At the VW brand, executives aim to lift their profit margin to 6.0 percent by 2022, compared with 3.8 percent previous year. To align itself properly to fund this EV strategy, the company is looking at making or considering several other moves.

The job cuts announced Wednesday come on top of an existing restructuring programme slashing 21,000 positions worldwide and targeting 3.0 billion euros per year of savings by 2020.

There have been rumours that the company may want to sell some of the non-core brands it owns, like Ducati, Scania and MAN. Volkswagen has already selected CATL, LG Chem, Samsung and SKI as battery suppliers for its new models. That is, finally, about to change.

2020 Volkswagen Golf spy shots- Image via S. Baldauf  SB-Medien
New VW Golf Reveal Delayed Until Late 2019

The new Golf's absence from the Frankfurt Motor Show does not mean VW won't have anything important to debut as that'll be the venue where the first production-ready I.D. model will celebrate its world premiere. Lips were sealed tight as to whether the model would be coming across the ocean, and if so, when.

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. Given the MEB's overall flexibility, it comes as little surprise the architecture can support smaller cars too. The largest of these batteries, which we believe to be a 111 kilowatt-hour (kWh) unit, is estimated to give the I.D. around 340 miles of driving range on a full charge.

Volkswagen has struggled to raise profitability at the VW brand for years. The brands under its umbrella include Audi, Bentley, Bugatti, Ducati, Lamborghini, MAN, Porsche, Scania, Seat, Skoda, Volkswagen, and Volkswagen Commercial Vehicles.

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