Volkswagen CEO warns shift to electric vehicles could cost 30,000 jobs -sources

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BERLIN, Oct 13 (Reuters) – Volkswagen’s CEO Herbert Diess informed a supervisory board assembly in September that the corporate might lose 30,000 jobs if it transitioned too slowly to electrical autos (EVs), two sources with data of the matter informed Reuters on Wednesday.

Competitors from new entrants to Germany’s market, like Tesla , has pushed the corporate to hurry up its transformation, Diess is alleged to have informed attendees.

The U.S. EV maker plans to provide 500,000 vehicles a yr in Germany with 12,000 workers, whereas Volkswagen’s 25,000 produce simply 700,000 vehicles at its Wolfsburg plant.

An organization spokesperson confirmed Diess’ place that Tesla and others’ presence in Germany heightened the urgency of transitioning to EVs, however denied that particular calculations had been made on what number of jobs might be misplaced within the course of.

“There isn’t any query that we’ve to handle the competitiveness of our plant in Wolfsburg in view of recent market entrants,” Volkswagen spokesperson Michael Manske stated, pointing to Tesla and new Chinese language automakers making inroads into Europe.

“Tesla is setting new requirements for productiveness and scale in Grunheide,” he stated, referring to a Tesla manufacturing facility beneath building close to Berlin which at peak capability will produce – greater than twice the German battery-electric car (EV) manufacturing in 2020.

“A debate is now underway and there are already many good concepts. There are not any concrete situations,” Manske stated.

The assertion by Diess was first reported by Handelsblatt.

A spokesperson for Volkswagen’s employees’ council stated that whereas they’d not touch upon whether or not Diess made the remarks, “a discount of 30,000 jobs is absurd and baseless”.

One other union spokesperson from the area of Decrease-Saxony, which is Volkswagen’s second-largest shareholder, stated such cuts have been “out of the query”.

EVs have far fewer elements than an inside combustion engine automotive and so require fewer employees to provide. In accordance with one estimate, 100,000 jobs within the German autos business might be misplaced by 2025 on account of electrification.

Volkswagen’s Wolfsburg plant, the world’s largest with over 50,000 workers, doesn’t at the moment make EVs, however the firm plans to provide an electrical sedan there from 2026 beneath a plan named “Venture Trinity”.

Diess has beforehand stated Tesla would .

The German autos big can be contemplating itemizing its automotive charging and vitality enterprise along with current IPO plans for its battery division, Chief Know-how Officer Thomas Schmall informed Supervisor Magazin in an interview printed on Wednesday.

Schmall stated nothing had been determined but and it will most likely take as much as two years earlier than the brand new corporations have been established and prepared for the inventory market.

Reporting by Ilona Wissenbach, Victoria Waldersee, Zuzanna Szymanska; Modifying by Jason Neely, Mark Potter and Bernadette Baum


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