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Volkswagen to shed up to 7,000 jobs through automation

15 March 2019
Volkswagen to shed up to 7,000 jobs through automation

The profit margin at its core VW brand slipped to 3.8% previous year, down from 4.2%, as higher investments into electric cars and challenges getting combustion-engined vehicles certified ate into profits.

The VW auto brand, which accounts for about half of the group's global deliveries, employs about 1,85,000 workers out of a total workforce of 6,50,000. VW has been pushing to rein in bloated expenses to lift profitability that is trailing rivals. That's ambitious considering it made fewer than 50 00 battery-only vehicles past year. At a question and answer session Tuesday, the 12-brand Volkswagen gather said it would build the quantity of electric models it offers over its brands like VW, Porsche, Audi or Skoda over the coming decade to 70, 20 more than recently arranged. As VW works toward the expensive dawn of the electric era, the company is struggling to push down costs and make the 12-brand behemoth more agile.

The activity cuts declared Wednesday please best of a current rebuilding program cutting 21,000 positions worldwide and focusing on 3.0 billion euros for each time of investment funds by 2020.

The company said operating results for the group in 2018 rose 0.4 per cent to 17.1 billion euros on sales that rose 2.7 per cent to 235.8 billion euros. "We are on track", Brandstaetter said. "We won't agree to positions being subcontracted", Osterloh told Bloomberg in an e-mail statement.

Volkswagen I.D. CROZZ

For this year, the VW nameplate targets revenue growth of as much as 5 percent and an operating return on sales between 4 percent and 5 percent. It will boost investment in future technology to €19bn through 2023, an increase of€8bn.

The Volkswagen I.D. will be a hatchback built on the company's "MEB" modular electric vehicle platform.

The new Golf's absence from the Frankfurt Motor Show does not mean VW won't have anything important to debut as that'll be the venue where the first production-ready I.D. model will celebrate its world premiere. Instead, VW will unveil the next iteration of Europe's most popular vehicle at some point after the IAA show in Germany as a move to give the Golf VIII the "exclusivity it deserves". If that goal isn't reached, VW will begin compulsory layoffs in 2025.