Having imposed short work schedules at some of its production sites in Germany lasting for several weeks already, Volkswagen AG is now imposing a temporary hiring freeze for the most important locations, in the struggle to cut costs. All six locations in the states of Lower Saxony and Hesse are affected: Wolfsburg, Hanover, Brunswick, Salzgitter, Emden and Kassel.
The Volkswagen core brand has been negotiating the planned efficiency program since the beginning of October. The company is faced with high costs and production losses, not least caused by a drastic drop in the sale of e-cars this year, which has to do with the fact that potential purchasers lack confidence that the government’s delusional strategy to phase out fossil energy sources will produce enough electricity to allow them to recharge the batteries of such cars.
In the first nine months of 2023, only around €3.40 in operating profit remained from €100 in sales in day-to-day business. The cost-cutting “Performance Program” announced in the summer is intended to reduce costs by €10 billion by 2026 and increase the return on investment to 6.5%. Media leaks speak of plans to, among other measures, also cutting 4,000 jobs in the company’s administration, but Volkswagen has not confirmed that.
