Europe’s largest carmaker, Volkswagen, is aiming to cut tens of thousands of jobs amid a drive to shape its post-Dieselgate future, media reports have said. A board meeting is to decide on future investments.
German carmaker Volkswagen is trying to increase savings at its biggest unit in Germany, where its costs are high while needing to find billions of euros to pay for the cleanup related to its diesel emissions cheating scandal.The agreement, details of which are to be announced at a news conference at 9.30 am local time (0830 GMT), foresees 3.7 billion euros ($3.9 billion) in annual savings at VW’s namesake brand, which will involve 23,000 job cuts in Germany alone, another source said.
CEO Matthais Mueller will head the hastily-arranged event at VW’s headquarters in Wolfsburg, which is slated to kick off at 08:30 GMT, as the company struggles to overcome its year-old emissions scandal that many fear has permanently damaged the reputation of one of corporate Germany’s strongest brands and cost the company at least €18 billion in fines and replacement costs.
The report said there would be no compulsory redundancies, but jobs that would break away as the carmaker focused more on e-mobility and less on combustion-engine technology would not be replaced. German sites would be especially affected by the cuts.The “Handelsblatt” said the job cuts were part of a deal between the works council and management linking a leaner workforce with pledges on investments in future technology.