Earlier it was reported that CEO Herbert Diess had said that “Volkswagen’s restructuring could risk one out of every four jobs” in the core VW brand and that “the elimination of 30,000 jobs” was possible.
see photosVW is investing heavily to become the world’s largest electric car maker by 2025
Senior sources at German auto giant Volkswagen on Wednesday dismissed reports that up to 30,000 jobs could be at risk if costs are not cut in its transition to an electric model. Earlier on Wednesday, a company source said the company’s chief executive Herbert Diess had given the warning at a recent supervisory board meeting. Business daily Handelsblatt reported that CEO Herbert Diess “expressed his concern” for VW’s future at a board meeting on 24 September and complained that compared to rivals, VW’s cost was too high.
“Volkswagen’s restructuring could put one out of every four jobs at risk” in the original VW Brand and “the elimination of 30,000 jobs” was possible, the newspaper wrote, citing internal discussions. A labor source from the supervisory board told AFP that Dias was “guessing about an extreme scenario” and compared it with the introduction of a four-day week in 1994, which “saved 30,000 jobs”.
Read also: Volkswagen CEO warns shift to electric vehicles could cost 30,000 jobs
VW CEO Herbert Diess reportedly warned the board that up to 30,000 jobs could be at risk if the company could not cut costs in its transition to an electric model.
The “consensus” was that “if the right adjustments are not made in the coming years, it could impact employment in a worst-case scenario”, the source said. But a source close to Dias told AFP: “There is no question of a 30,000 job reduction.”
A Dias spokesman earlier told AFP that the carmaker needed to “deal with the competitiveness of our plant in Wolfsburg”, a parallel with US electric car pioneer Tesla, which is close to starting production at a plant near Berlin. .
“The debate has begun and there are already a lot of ideas,” the spokesman said – but there were no “concrete scenarios” so far.
A spokesman for the Works Council also rejected the suggestion that the 30,000 jobs could be called “absurd and baseless”.
VW – whose 12 brands include Audi, Porsche and Skoda – is pumping billions of euros into the transition to electric and aims to become the world’s largest electric carmaker by 2025.
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