Volkswagen to cut 7,000 jobs in electric auto push

Lloyd Doyle
March 13, 2019

The German vehicle 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.

German automaker Volkswagen AG said Tuesday it plans to ramp up its production of electric vehicles over the next 10 years to 22 million and reduce its carbon footprint over vehicle lifecycles by 30 percent.

Its VW brand delivered €3.2 billion in operating profit before special items, the carmaker said.

Arno Antlitz, Volkswagen's chief financial officer, said that the measures are expected boost profits by 6 percent by 2022.

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. Furthermore, the company targets a 5 percent yearly increase in productivity at its plants, as well as a stronger focus on process digitalization.

The electric version of VW’s iconic Kombi camper the Buzz. Source VW
The electric version of VW’s iconic Kombi camper the Buzz. Source VW

At the same time, VW will create 2,000 new software jobs, as well as electronics positions in technical development, it said.

VW's electric auto portfolio is limited at the moment, but the company hopes to sell at least 1 million battery-powered vehicles by 2025.

"Given the interest in the I.D. family shown by our dealers, I think it is possible that the launch edition will already have sold out before we unveil the September", stated Jürgen Stackmann, Volkswagen's board representative for sales, in the conference. Zwickau will also build electric cars for Volkswagen's Seat and Audi brands.

VW will start building the ID at a factory in Zwickau, Germany, which has maximum annual production capacity of 330,000 models.

Other reports by Iphone Fresh

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