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Automotive Industry Faces Major Job Cuts
2024-09-16 13:29:08
Automotive
Business

Automotive Industry Faces Major Job Cuts

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Volkswagen is poised to implement significant job cuts, with plans to close 2-3 plants and eliminate over 15,000 positions due to a drastic decline in vehicle sales across Europe. Analysts predict that the company may incur provisions of up to 4.4 billion euros to address this excess capacity.

The decision has sparked backlash, particularly from labor representatives who are determined to fight against these layoffs. Similarly, Continental is also restructuring its automotive division, potentially impacting jobs in Baden-Württemberg, while ZF Friedrichshafen anticipates reducing up to 14,000 jobs by 2028 in Germany.

The automotive sector is clearly grappling with critical challenges as it navigates a shrinking market.

Related news on that topic:

Volkswagen Faces Potential Strike Amid Job Security Concerns

Volkswagen is navigating a precarious crisis as its works council chairwoman, Daniela Cavallo, signals a looming strike. Employees are advocating for extended job security amidst collective bargaining negotiations set to commence on September 15. With the expiration of peace obligations at the end of November, warning strikes could emerge by December for the 120,000 VW workers. The discontinuation of subsidies has severely impacted sales, leading to production cuts and heightened anxiety among staff. Local leaders in Niedersachsen are adamant that plant closures are unacceptable, stressing the need for VW to present a clear plan for the future. Hannover's mayor, Belit Onay, has directly challenged VW’s leadership, calling for concrete strategies to address cost pressures while adapting to the evolving European automotive market. Concerns over VW's inconsistent approach to electric mobility and investment disparities between the US and Germany further fuel the urgency for resolution.

EU Automotive Industry Faces Job Crisis

An internal document from the EU automotive sector reveals alarming concerns about potential job losses and substantial fines. As stringent CO2 emission limits are set to decrease to 93.6 g/km by 2025 and 49.5 g/km by 2030, the industry fears it may have to halt the production of over 2 million internal combustion engines. This drastic measure aims to avoid penalties amounting to billions. In response, the automotive association ACEA advocates for an emergency article to delay the implementation of these regulations by two years. Without this postponement, the industry's ability to comply with the new standards and protect millions of jobs remains in jeopardy.

Read 3 more recent news on this topic

The press radar on this topic:

Yahoo Finance
16. September 2024 um 06:33

Volkswagen may book up to $4.4 billion in provisions on capacity cuts, Jefferies says

Economy
Finance
Volkswagen may book up to $4.4 billion in provisions for planned capacity cuts; Jefferies analysts say management is determined to tackle excess capacity and spending; no plan B that would rule out capacity reduction; charges could be around 2.5-3.0 billion euros, or up to 4 billion euros; terminated job security scheme, facing powerful unions.
t-online
16. September 2024 um 09:16

VW | Consequences of job cuts: Analysts expect billions in costs

Economy
Finance
VW plans to reduce capacity with 2-3 plant closures and over 15,000 job cuts due to 2 million fewer vehicle sales in the European car market, of which 1/4 is attributable to VW; Analysts expect 3-4 billion euros in provisions; Collective agreements terminated; Works council chairwoman Daniela Cavallo wants to fight against job cuts; Employment security affected; CFO Arno Antlitz sees a need for action.
Frankfurter Rundschau
16. September 2024 um 10:42

Why operational terminations at Continental could also affect Baden-Württemberg

Economy
Finance
Continental, a technology group headquartered in Hanover, Lower Saxony, is planning job cuts that could also affect the Ulm site in Baden-Württemberg. So far, the company wanted to implement the cost-cutting measures in a socially responsible manner, but now it no longer rules out operational terminations.
tz
16. September 2024 um 10:42

Why layoffs at Continental could also affect Baden-Württemberg

Economy
Finance
The technology company Continental, headquartered in Hanover, Lower Saxony, is planning a reduction in staff in its automotive division, which could also affect the location in Ulm, Baden-Württemberg. According to a recent report, the automotive supplier is now also not ruling out layoffs for operational reasons, although the cost-cutting measures are intended to be as socially acceptable as possible. The automotive supplier ZF Friedrichshafen has also announced that it will reduce up to 14,000..
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