VW will fire over 35,000 staff as German auto crisis hits breaking point

[@martinhermes6630]

@electricviking Unfortunately your info is not correct. Mabe it was wrongly translated from German. VW will fire nobody. Quite the opposite: They are not allowed to fire anyone until 2030. But they will reduce the employees by 35k on a willingly basis . That means that they have to offe the employees money to leave. So the situation for VW is even more critical than you described!

[@jonsnow6741]

Mercedes 16k Bosch 5k VW 35k then all those suppliers no one wants to talk about !

[@teckmenglee8060]

The EU automobile supply chain will be badly hit; together with all the obsolete parts and vehicles already manufactured but cannot be sold for any profit.

[@FunnyBunny-pd5xx]

Recently reported, for every one person directly employed in a German Car Manufacturing Plant, between 10 - 11 people, are employed in The Supply Chain.

[@tilerman]

@@FunnyBunny-pd5xx I'm British but my mum was German and i have a lot of German cousins working in VW plants and there are whole communities reliant on the plant, everyone knows someone who works in the factory and or the supply chain. Cafes, shops, schools, surgeries etc etc wholly reliant on the plant. 2 of my cousins whom i speak to often have very good management positions, not hard wok, company cars, both on high pay and they are terrified of losing their jobs.

[@larryc1616]

All Germany has to do is build better EV's than Tesla and Chinese ev manufacturers

[@Worldturnedupsidedown]

Thyssenkrupp 11k

[@AnotherMartinez]

What we just witnessed is the German government solution to a corporate nightmare… kicking the can down the road …

[@blackknight4996]

Coming to the end of road quickly 😂

[@larryc1616]

They kicked the can for 20 years while Tesla and Chinese ev manufacturers continued to innovate and take over auto manufacturing. Kodak!

[@amandagrant4331]

Nowadays, German politicians will only add chaos to enterprises.

[@scottmcshannon6821]

kind of like how the US just handled their deficit.

[@MetaView7]

When the govt extracted billions of dollars from the economy and shipped it outside of the country, how could the economy be good?

[@mattx4253]

If you have to compete on price you can’t be paying 100k for people to basically build mediocre cars that don’t perform as good as ones made for half the price

[@user-kc1tf7zm3b]

@@mattx4253 The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@zes7215]

wr

[@stivowen5710]

@@user-kc1tf7zm3b My German car is fantastic, my next car will be German too or possibly Japanese. VW manufacture very good EV’s too. If I buy an EV it will definitely be a VW group product. Why? They are good, thoroughly engineered vehicles and, most importantly reliable too. The other thing is that they pay their workers a good living wage and have very good benefits for their employees. Does everyone else do that? Do you care?

[@user-kc1tf7zm3b]

@@stivowen5710 Economics and social science does not work like that! It does not matter what you think and what you purchase. There are *77 million cars* sold each year worldwide. China is the world’s largest manufacturer of cars and EVs. Ultimately, most consumers want quality, value and a good price which is what Chinese EVs certainly deliver. Volkswagen will never make a truly compelling and competitive EV compared to the Chinese, as the Chinese are hyper efficient with making the world’s best EVs. Does anyone worldwide really buy ‘German’ Blaupunkt or Grundig TVs anymore, unlike the 1990s and 2000s? Of course not. The East Asian TVs are a million times better than the decidedly pedestrian German branded TVs which are currently made.

[@daveslater309]

@@stivowen5710 Yes we care - but can we afford it?

[@LivefreeLoz]

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[@VictoriaFirmstone]

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[@LivefreeLoz]

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[@HollyGarwell]

His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.

[@kohtalainenalias]

It's actually quite simple: europeans cannot afford expensive cars (anymore).

[@drwisdom1]

I have been driving VWs for over 50 years but gave up because they no longer make cars that I want, not because of the price. VW lost its mojo.

[@SigFigNewton]

Nobody can. People can talk all they want about the US outperforming other economies at the moment m but the auto segment seeing market share gains in the US is small or midsized vehicles, not trucks and SUVs

[@SigFigNewton]

And that’s despite the strong two-decade-long marketing push to trick Americans into *wanting* huge personal vehicles being extraordinarily successful.

[@Neil-Aspinall]

EV's have no re sale value, basically.

[@vgbyte1648]

​@@Neil-Aspinallif that's true, why arent there really cheap used evs to buy?

[@jamanjeval]

Diesel-gate wasn’t the beginning of the problems at VW, it was one of the first symptoms.

[@Arctic5fox]

My brother-in-law bought one of those cars. it was the best diesel car he ever bought and he wanted to keep it. The diesel gate bologna was made a big thing out of nothing.

[@BittermanAndy]

@@Arctic5fox dieselgate literally killed people. But your brother-in-law liked his car so I guess that's alright then.

[@TheoWink-wh8st]

TDI was the best engine

[@b4804514]

@@Arctic5fox Global warming is nothing. You are not living in reality

[@KeyshowJi]

40x the pollution (in central valley, in ca, at steady-state, at most efficient speed) of a big-rig. Well done, VW. You showed the world your mastery of software!😅

[@Knightmare919]

Meanwhile their executives are getting insane amount of paycheck amid a crisis.

[@MrSchattka]

As someone of German descent, I feel I can freely say that I, too, have no sympathy for the Germans, particularly the executives at VW, and other car manufacturers.

[@user-nh1yb9mk7y]

@@Knightmare919 this would not change anything. Workers want to be paid without performance. There is no need in such high a number of workers

[@macmcleod1188]

​​@@user-nh1yb9mk7ythe problem did not start with the workers but with the executive class. The executives destroyed the public's trust and goodwill. The workers are just along for the ride..

[@larzkruber822]

Ever seen the paychecks of the average worker there? It´s far above average and the company is filled with nepotism...

[@AFlyingCookie2024]

You sound like a capitalist blaming the workers but miss the whole point of CEOs and upper management screwing the companies and lining their pockets speeding the boat into and iceberg

[@johnfrancis4401]

VW is toast. BMW and Mercedes are suffering but not as much. Unfortunately the writing is on the wall

[@user-kc1tf7zm3b]

Rubbish. *ALL* of the legacy German car companies are finished. The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@user-nh1yb9mk7y]

Check the numbers. Their sales have fallen by 3% year to year. They are just cautious with the tendencies

[@user-kc1tf7zm3b]

@@user-nh1yb9mk7y Petrol car sales peaked the better part of a decade ago in 2017 and have been falling ever since. 2024 worldwide YTD EV sales are up by *+25%* compared to 2023. Don’t you get it? Car sales are a zero sum game, as when an EV is sold, one less petrol car is sold. Not surprisingly, many Germans, Japanese and Americans have the common belief that EVs are only a fad and petrol car sales will miraculously rebound. This thinking is beyond stupid.

[@ricksworlddereaux2397]

Never underestimate Germany..they the greatest Inventers and the 3rd Biggest Economy in the World..and they just big as Montana.....China produces just cheap Junk..or low quality gods.....tell me one product out of china that is good and reliable..???😂😂😂

[@TheKelly1951]

iPhone ​@@ricksworlddereaux2397

[@jeffreykreiley7265]

German citizens should be celebrating the lower CO2 emissions that will result from more de industrialization just like the UK.

[@softwarephil1709]

Meanwhile, Germany is relying on coal power plants, and they’re cutting down forests and burning the wood for electricity.

[@richard--s]

They could have lowered the emissions by working in the field of e-mobilitiy. But no, they refused to do so. And now it's too late.

[@simonxag]

I'm not sure whether the "celebrating" comment is supposed to be serious or ironic, but this does look very like the de-industrialization that hit the UK. It may have come to Britain earlier (thanks to Thatcher) but the underlying driver was global competition on labour costs. Societies that pay workers a pittance, dump the old and sick (because they cost), and keep everyone "happy" with repression, get to set the standard for everywhere. Thanks to global freedom (for the market and companies) the developments of intellectual liberty are applied to the most downtrodden of human resources.

[@fredfred2363]

But globally, CO2 is still going up. And up and up. Moving production actually increases CO2 even more more because of transport costs. Mad.

[@mddell24]

There is a heap of CO2 emissions from EVs that no one talks about. The politicians keep avoiding it, the green people just talk about "EV's have no exhaust gas. SO END OF STORY!!!".

[@Starpopper800]

Somewhere Herbert Diess is saying “I TOLD YOU SO”‼

[@Ahda108]

Herbert existed long ago n now it's on VW. He track record has not been tainted by this😂

[@Harrythehun]

@@Ahda108That's what he said.

[@tomdexter5029]

Herbert Diess also had no clue on how to revive VW. All he knew was that the era of Diesel (and Gasoline) was over. That makes him just a 10% guy NOT the 100% guy. A visionary not only has to be a communist (to say "THAT won't work") but also has to be a realist (show "WHAT works"). Herbert Diess failed badly with CARIAD and his ideas on EVs were just borrowed from Elon Musk. Not at all a sign of originality. Remember also that the German misery begins with VW, not ends with it. MB and BMW are riding in the same boat. Just that VW is grabbing all the attention and they are happy to lurk in the shadows.

[@BillJohnston-y7o]

This is what's really going on in China. What do you think happens when a German Car company lays off 35 thousand? kzbin.info/www/bejne/fp3WoISQnc98g7c

[@Moondoggy1941]

@@tomdexter5029 The problem with the Car Industries starts with the Government and ends with the Governments, all of this capitulations is do to the idiotic Paris Accord and COVID. VW is and has always been VW, they are there own biggest enemy. They don't need competition to take them out, they can do it all by themselves.

[@fergyspoolshots]

“Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times”

[@davidbeppler3032]

Women do nothing.

[@AFlyingCookie2024]

Hard times don’t create strong men-they break them. Strength is forged not in suffering, but in solidarity, not in survival, but in support. History is shaped not by cycles of strength and weakness, but by the systems that either uplift or destroy the many.

[@sergeyvalerievich5976]

A bit misleading, not firing but reducing by 35k in 5 years - lesser trainees and voluntary redundancy (large pay off package to get a new job somewhere else or retire) . VW and union creating a narrative that all will be OK and avoiding the truth that Chinese market is done with VW, small but profitable Russian market is closed, so only EU left to buy VW (third of current capacity). VW counts on German government to save them in 2030! Energy cost will go up in Germany as US forcing them to buy more LNG at a premium price to avoid tariffs on EU goods.

[@dkc_mr_sleep]

Yes, the method of cutbacks gives some breathing room to VW’s employees. However, the US doesn’t FORCE Germany to buy our LNG. German politicians and lobbyists sought out, for their own benefit, large contracts for Russian gas. The Greens got the nuclear power plants shut down. Russia declares war on Ukraine and Europe needs to reduce its reliance on Russian NG because it funding the war. Germany was in the worst position in Europe because of the self imposed bad policies. All this corruption and stupidity has been exhaustively covered by news organizations. The Americans warned Germany about the pitfalls of increasing their Russian gas usage - but, they didn’t heed that advice and pushed back on Washington till the US dropped the objections.

[@serpserpserp]

At face value it doesn't make a lot of sense. But essentially, you need to keep the workers going to work amidst massive layoffs. This is why they said no more firing to 2030 and keeping all factories open. This is until the end of next year, where they'll have to go back to the unions and tell them they need to sell factories and fire more staff. It'll make more sense then, because the factories will be underutilized, they'll sell less cars again. They'll then sell more assets and cut more staff while making more wild promises. This is the death cycle they are stuck in now. A very orderly death cycle, but one they cannot escape.

[@pja7]

It’s 35,000 by 2030 with no compulsory redundancies and with an ageing workforce many will take early retirement. So it’s better for the workers to avoid pay cuts and lose the jobs

[@crosslink1493]

So its not all at once, maybe just let the normal retirements happen and not replace those workers? That would make more sense than what's being mentioned in this video. Slowly ramp down production, so if new products become popular they could easily be integrated into an operating factory versus starting up an old one.

[@kayakeux]

VW made in Mexico has bad quality. Canadian speaking here.

[@hendrx]

That doesn't even make sense, 90% of the car is just running through the pipeline

[@kayakeux]

​@@hendrxGerman cares about quality, mexican are under paid and you get 90% more problems with these cars.

[@tomdexter5029]

That's still better than VW "Made in Germany" and sitting in the factory. At least, that's what the management seems to think.

[@patrickahaus6570]

My 2010 New Beetle has been really great aside from trying to change headlights. I Love my Beetle, sorry to see the end of VW. Profits at all cost for share holders. No place in the world for a basic car.

[@hendrx]

@patrickahaus6570 car is 15 years old bro, those cars were made to last beyond the warranty

[@routzhan]

I think this is coming to the United States as well. Look at all the vehicles sitting on the lots at GMC dealers. The cars and trucks are way over priced and get minimal fuel economy.

[@gbw28]

Terrible reliability too.

[@fleurdewin7958]

Trucks in US especially are getting way too expensive. That is the biggest problem.

[@lukeecle117]

nope, europeans must pay 4 x the price to buy american gas and oil, and spend hundreds of billions of dollars on american weapons , europeans are becoming poor, not americans, the fed can print free money, the eu can't do it, that's called dollar Hegemony

[@djt8518]

Worse than this coming to the us

[@chriskirkman6049]

This the worst decision for them , That is the influence of IG Metal. This will bring the end to them quicker

[@Suburp212]

IGM kills worker's lives

[@zes7215]

wr

[@WeAreAllDoomed-n5i]

After DieselGate, they don't deserve any sympathy!

[@Bernd-b1y]

You are clueless

[@WeAreAllDoomed-n5i]

@ VAG were made to buy back all the cars affected in America! In the UK, they did nothing! After the way they treated UK customers, good riddance.

[@WilliamKirkland-j4r]

Just another example of Union and Government sponsored unions creating their own demise. Business means working and applying capital and intelligence into an expectation of a positive return and/or profit. Business does not exist for 'workers' or government. Thanks for your program.

[@user-nh1yb9mk7y]

Businesses would rather go to China build mediocre cars and sell them as if they were produced in Europe

[@user-kc1tf7zm3b]

@@WilliamKirkland-j4r The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@amandagrant4331]

Unions can go on strike. VW can't simply fire workers.

[@dvader3263]

Yes, if those Union workers were paid only minimum wage, the company and the executives could all survive.

[@AFlyingCookie2024]

A business doesn’t generate profit in a vacuum-it’s the labor of workers that creates the products or services that businesses sell. Unions exist to ensure that workers receive fair compensation, safe working conditions, and benefits that reflect their contribution to that success. Without workers, there is no business, so the idea that business “does not exist for workers” overlooks their foundational role. Historically, strong unions have been linked to increased productivity and economic stability. For example, countries with strong union traditions have some of the most robust economies in the world. Unions help businesses succeed by fostering long-term loyalty, reducing turnover, and ensuring workers are motivated and skilled. If businesses fail, it’s often due to poor leadership, market conditions, or mismanagement-not unions. Chinese labor unions, such as those under the All-China Federation of Trade Unions (ACFTU), have contributed to the EV industry’s growth by mediating labor disputes and fostering collaboration between workers and management. This cooperative framework ensures stability and productivity, enabling car manufacturers to focus on innovation and scaling production.

[@klockwood3441]

Anyone remember Fords of Dagenham? The German car industry is slowly dying. I feel sorry for those people who will become redundant.

[@zizimai7568]

Times are changing fast & VW are still doing the same things since WW2. People will lose jobs yes, but thats due to technology progression. Robots & AI will take over repetitive human jobs. They can work 24hrs a day without break. Humans just need to evolve to work in other forms of jobs as technology progresses.

[@zes7215]

wr

[@farmerpete6274]

Fords of Dagenham? Yes, I remember them very well - the cars were known as 'Dagenham Dustbins' !!! (America = refuse containers)

[@drwisdom1]

Unions only have the power to negotiate work contracts. The success of a company is dependent on management and its ability to adapt to changing times.

[@peterfireflylund]

Unions make it really hard to adapt. They have far too much influence on how companies are run and limit what management can do.

[@pilninggas]

Unions can be so adversarial as to be destructive - the UK car industry was decimated by the unions in the 70s. Every time they went out on strike, they didn't improve their lot, they brought the day of the plant closure forward. (Edit: terrible management, the oil shock etc were also significant factors)

[@AFlyingCookie2024]

Management are money sucking leeches. The Jugopetrol Oil Refinery did it without management

[@AFlyingCookie2024]

No man it is always ceos and the ultra rich that wants to line their pockets. Upper management in many British car companies failed to modernize production techniques, invest in new technologies, or adapt to global competition. Many companies were focused on squeezing profits rather than reinvesting in infrastructure, leading to outdated factories and lower-quality vehicles.

[@Bazilhatz3773]

​@@pilninggaswrong!!! The oligarchs wanted cheap labour and shifted industry off shore throughout the west, get with it because if you and the west don't really understand the big issue the ruling elite will destroy you!

[@tg8199]

'Fire' is such a big word, we are talking about part time retirement with big severance packages, job positions being closed for good and not re-hiring leaving staff, so actually all those people who can leave hit the jackpot

[@old_man_with_hat]

They are not firing 35 000. "Sozialverträglich" means: they are not replacing staff until 2030, effectively reducing the work force. The downside for VW is, that these cost cuts are not taking place immediately.

[@farmerpete6274]

Then that is even worse! This will all end in tears.

[@michaelr3647]

So they won't be taking on new talent, and they won't get rid of their dead wood. That's not a good plan.

[@JAM_2024]

So they are even more screwed

[@wengelder9256]

@@michaelr3647not how things work of course . Dead wood can be included in the 35,000 . New talent can still be hired . Maybe you have no idea how the corporate world works . Most of these disappearing jobs will be manufacturing anyway .

[@xxBlackpspxx]

Yes. I was about to say. They will fire no one they said. Beschäftigungsgarantie is until 2030. Wtf is this dude talking about.

[@ambroulard]

Since they are firing so many people and have cars Piling up perhaps they should give them each a car.

[@ronin4580]

IMHO, Germans are going to have to re-imagine their economy to reduce reliance on the auto industry.

[@softwarephil1709]

Great. What’s your plan for the new economy?

[@pmadjidi]

@@softwarephil1709 selling NFTs

[@Neil-Aspinall]

@@softwarephil1709 Electric scooters, now there's a growth area!

[@Random-es7yo]

5% of the economy according to Google

[@extraterrestrialfascisti7625]

Keep the factories open but lay-off 35,000. That is the equivalent of sending the life boats off empty as a way of saving the Titanic

[@tudorcostinciubotariu4872]

4 now they keep them, while another Industrie takes over and prepares them. It should take round about 2 years. As for the employees, they will stay at home with much more than just 10 % cut but rather 35 %

[@sillypuppy5940]

That did happen, well actually some were half empty - but the ship still sank.

[@squashduos1258]

German car makers are going through what Volvo and Saab went through in the 80s….lets face it they are done…labor cost too high…make the factories into military manufacturing facilities…they make the best weapons…Leopard tanks anyone?….

[@fredfred2363]

You might be onto something there.

[@severeoversteer]

Germany is in more trouble than volkswagen is, in my opinion. Volkswagen doesnt need or want its german factorys anymore.

[@C4H6As]

The iconic GOLF, a symbol of great german industry, will be produced overseas soon. That alone tells a lot.

[@richard--s]

​@@C4H6As and they want to produce it or other cars in Mexico. Didn't they hear that the US is planning on high tariffs for Mexican products? The world has changed - they missed the e-mobilitiy and they missed the Mexico - USA thing... They miss the whole world... I'm speechless...

[@drwisdom1]

I want VWs from Germany, but the way they used to make them.

[@lightale1367]

Yeah....not them crappey EV'S

[@johanndork5364]

Bought 6 golfs in the past for spouse and company. No way will I be buying a crappy Mexico built one.

[@drwisdom1]

@@johanndork5364 I have been buying and driving GTIs, my Corrado, and a Sportwagen since 1983, which are Golfs. I like my Mexican Sportwagen. What I don't like is automatic transmissions and preventing access by my diagnostic tool.

[@dvader3263]

@@lightale1367First, one needs to learn how to write proper English.

[@fleurdewin7958]

Yup. Not the current VW products that have so much plastic instead of metal in the engine bay. For VW, I guess they will make their engines entirely with plastic if they can make it last until the warranty period expire.

[@PeterFallenius]

It’s a 9 week solution… To get it out of the news to after the German election… That’s the only explanation that makes sense. The fear that AfD and Sahra Wagenknecht would benefit is huge… Very interesting times…

[@NoidoDev]

What do you mean? Will the negotiations go on after the election?

[@dongeorge4037]

It sounds to me like VW finally showed the Union the actual numbers. And the Union was terrified.

[@ExploringCabinsandMines]

Let's pool our money and buy the Eectric Viking a different color shirt!

[@commuterbranchline8132]

Arrogance and an inability to change was ultimately the downfall of the company. The Board, Unions and workers all played a part.

[@joehowe9532]

Spot on, lots of blame to go around. Forgot to mention governments role in this.

[@mrweisu]

No raise till 2030. That's freaking disappointing. I bet all the smart employees will leave and only the ones who can't find job elsewhere will stay.

[@pilninggas]

The trouble is away from Stuttgart and Munich many of the towns with car plants are dependant on the car plant - other factories are suppliers to the car plants and the service/hospitality sectors of the town are reliant on the local economy driven by the car plant.

[@jimsteinway695]

If you’re so enamored by the Chinese why don’t you move there ?

[@marktan3177]

many did. But most Americans could not cut it there.

[@renezirkel]

Noone will be fired. According to the agreement with the union, the management agreed to reduce the workforce by 35,000 but only with retirements, fluctuations or/and severance package. Thats is widely different from just beeing fired. Do you research before again unfairly judging unions.

[@Piecenotwar]

Severance packages are pretty weak, the compulsory minimum payout is something like a a weeks pay for every year you have been there and you are taxed on it, nothing really when you can’t find another job.

[@renezirkel]

@@Piecenotwar You dont have to accept it and stay. I got a similar offer back in 2010, when there was the other automotive crises. And i accepted it, because, I saw my automotive company in a downward spiral. It gave me starting money for my self enterpreneurship back then. And I could deduct it as business expenses also.

[@geneappeal]

I don't really see what value you are adding to the conversation. No mention of the massive overcapacity of China's automobile industry or of the degree of gov't subsidization of it and how even with that they are all in danger of drowning in debt. There's this thing called "the big picture". Have you heard of it? Germany's economy has been built on cheap petro-chemical inputs from Russia combined with high end exports to the rest of the world. With regard to China, they went all in. We all know what happened with Russia but as China's economy implodes, surprise surprise, Germany's goes down with it. There's a moral here, something about putting all your eggs in one basket, or two. VW is just the tip of the iceberg. The whole German economy is still sailing through iceberg alley as though it's business as usual. Somehow though the unions are the bad guys for collecting dues and trying to make the best of an impossible situation? Your comment on unions shows you up for just a pretty face and not much else. Nothing in the way of analysis there that I couldn't get from a construction site porta potty.

[@kirgan1000]

If only VW did have a leader in the past, that wanted to go all in on electric cars, and wanted to build a totally new factory, with a totally new platform to keep up with Tesla, and did have good relationship with Elon, so VW could have licensed/buy parts that they did lack competence in, and did have a cool name like Herbert Diess.

[@PassiveJoy]

Not very likely even in a parallel universe. Even if the CEO decides to go all in on EVs, the rest of the board and investors will be all against that cuz it will hurt their dividends if the corp changes its business model and makes huge investment in EVs.

[@KeyshowJi]

Poor diess…

[@opdmin]

You really don't know what unions do. This isn't Hollywood, it's about sustainable longterm employment. Also a significant number (not all) of the job losses will be through voluntary redundancy. I'm not German, I don't work in the car industry but have been through the process as an employee.

[@geirvinje2556]

VW will never go away. Maybe their will be restructured, but the German government will use tax payers money to help them. EU will also use tariffs to protect the car industry.

[@blackknight4996]

Both will fail. China will retaliate and EU will feel extreme pain.

[@mannionmax]

UK government tried that with British Leyland; it won’t work if the business is uncompetitive. Tariffs won’t work either as BYD can just build a factory in Romania and still undercut VW.

[@zaharijaafar8311]

Tariff is just a trade barrier that is not sustainable in the long run that will eventially kill the industry

[@user-kc1tf7zm3b]

@@geirvinje2556 Rubbish. *ALL* of the legacy German car companies are finished. The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@FunnyBunny-pd5xx]

​@@blackknight4996 From my research, Beijing has/intends to retaliate with tariffs on pork and pork products. This will "hit" Pork Farmers in Spain. I believe, another country has already "moved in" with their supply of pork and pork products. Beijing's NUMBER ONE priority, Domestic Policy IS Food Security, for its people.

[@cultoftranquility9616]

I think the new ID3 and ID4 are actually great (especially the GTX), continue to improve them, discontinue everything else and fire everybody not needed ... Serious advice :)

[@user-kc1tf7zm3b]

@@cultoftranquility9616 Volkswagen, Mercedes and BMW EVs are rubbish compared to Chinese EVs. The Chinese set the standard.

[@amandagrant4331]

VW should abandon the production of EV and stick to ICE instead. Even if it is old and new, as long as it can make money, it is a good technology.

[@user-kc1tf7zm3b]

@@amandagrant4331 Worldwide 2024 EV sales are up by *+25%* compared to 2023. Don’t you get it? Car sales are a zero sum game, as when an EV is sold, one less petrol car is sold. The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@user-kc1tf7zm3b]

Worldwide 2024 EV sales are up by *+25%* compared to 2023. Don’t you get it? Car sales are a zero sum game, as when an EV is sold, one less petrol car is sold. The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@ephorntube]

VW could have said in solidarity with its workers. OK, you take a 10% pay cut and the shareholders take a 10% dividend pay cut, deal?

[@trooperinvestor9336]

You must think you are a genius or something

[@CombatSport777]

And most importantly the admin all take a 20% cut. Their poor decision making is what got them to this point

[@KeyshowJi]

Poor decisions? Herbert Diess had it right. So what did they do-fire him 😮😮😮😮😮😮😮

[@joechughtai3155]

How many times does it take around the world before they learn their lesson? UPS, FedEx, Boeing, US car manufacturers… on and on.

[@KDieter]

The days of VW coming to end

[@maxthemagition]

How many will be fired in the USA?

[@WillieFungo]

Probably none because the US actually has an economy

[@zes7215]

wr

[@teckmenglee8060]

US will save the automotive industry in USA as the bosses are "donating to the US politicians". So the American citizen will subsidize the bailout, to the tune of at least 200 billion USD. EU wants to do so, but because EU cannot print money like USA (without consequence), hence EU will have to bite the bullet.

[@richjones5432]

Nobody is getting fired. They will be made redundant. Big difference tho end result is the same.

[@lightale1367]

None....Trumps putting tarriff on them....and giving tax relief on cars made in USA

[@nigelk780]

Union , because the 35000 effectively get an early pay off and the remainder still get to hold onto their future pension payout which come from the separate pension fund . As you say a poor settlement for the companies future, should have shut German plants but no doubt couldn't.

[@user-nh1yb9mk7y]

Germany had some loyalty to VW. Other don't. Investing in China while we on the brink of the war with Chins is extremely irrational

[@amandagrant4331]

@@user-nh1yb9mk7y So VW should quit the Chinese market now? This will only make VW die faster.

[@svnri]

You need better sources. The reason why an agreement was reached and why the layoffs are happening until 2030 is because they are not really laying workers off immediatly. This is more about not refilling positions of workers that are retiring. So they are cutting a ton of jobs entirely. Might also mean they are sending some workers into early retirement. You left a lot out of this agreement, that´s why you don´t understand. Don´t think this is going to save their company tho.

[@serpserpserp]

natural attrition is another way company's try to get around paying massive redundancies. The unions will put pressure on every worker to stay though.

[@svnri]

​@@serpserpserp Pressure to stay after retirement? the unions job is to make sure the workers keep their jobs and get their pay, they aren´t forcing workers to not retire to stick it to the company. This agreement makes the most sense for the workers but I don´t think VW are too happy about it. Their problems aren´t really the workers, but being too focused on china and assuming you will always be succesful there because they previously lacked their own car industry. And also not trying to innovate. It´s pure hubris, that´s all it is.

[@stuartharris5527]

Germany has an enormous population bulge of retiring workers. All those born in the 1950s, with large families. This 50s generation is also the only one buying new cars. Everyone else, younger and older, buys used cars because if price. Not only in Germany, but orher European countries 8:29 who suffered huge losses in WW2. As this cohort retires, sales of new cars will decline, especially high priced cars. VW will have to appeal to a new demographic that is not enamored to ICE. The existing plants will either retool or go under. Engine manufacturers will either retool to make electric motors or go under. Haven't mentioned 48 v systems, which were all the rage until the efficiency of alternators doubled. Bosch, Continental, and the rest will have to retool or go under. Wiring harness makers will have to adapt or go under. AC manufactures will retool or go under. Instrument clusters. Transmissions. Steering wheels. Frames. Stamping. Radiators. Alternators. Overall, a massive structural change faces Germany. Plus, new designs will be optimized for robotic assembly, such as wiring harnesses. The robots are coming. Perhaps Bosch can innovate in this area. That leaves painting, welding and tires..

[@ingmarlangerak8973]

So nice all those EVs who wrecks every brand!

[@jsanders100]

Silly comment

[@user-kc1tf7zm3b]

@@ingmarlangerak8973 2024 worldwide YTD EV sales are up by *+25%* compared to 2023. Don’t you get it? Car sales are a zero sum game, as when an EV is sold, one less petrol car is sold. The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@zes7215]

@@jsanders100 wr

[@Subjectnumber28]

30.000 more employees for the Military industrial complex, Germany went full circle just like 1933

[@aeromtb2468]

bankruptcy soon

[@KeyshowJi]

❤❤❤❤❤

[@davidbeppler3032]

Imagine the banks when VW can't pay back 300 billion they borrowed.

[@stivowen5710]

Are you sure about this? Because in Germany the rules are slightly different. Are you scaremongering?

[@christophreuter9572]

Before the „crisis“ no one had a problem with too high production costs, too high sick level and other reasons that are now should be the cause. The real problem is mismanagement and the product is not longer competitive.

[@IzzyRumi]

Germany is like a train wreck now, try to look away.😑

[@stevewhitmill2037]

Stellantis, Ford and GM will follow. 10 years time they will mostly be gone.

[@MrkBO8]

Europe needs to quit manufacturing industries until Nordstream 1 & 2 are online and that'snot happening in our lifetimes

[@jsanders100]

Ever

[@zaharijaafar8311]

Scholz.and Von Der Leyen are to be blamed for this disaster

[@FunnyBunny-pd5xx]

From my understanding, Nordstream2 pipeline transporting Russian gas to Germany, when "blown up" one pipeline still has the capacity to be functional. ALL The Members of The Traffic Light Coalition Executive, had to do, AGREE to open the pipeline up/switch it on ! IMO Currently, this is impossible, as The German Executive has collapsed, with Olaf Scholz handing his letter of resignation to The President of Germany, Frank-Walter Steinmeier.

[@user-kc1tf7zm3b]

@@MrkBO8 Rubbish. *ALL* of the legacy German car companies are finished. The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@catherinegrimes2308]

The problem was using the pipelines in the first place. Germany should have kept its nuclear power plants and invested in renewables.

[@socialmoravec]

Merry Christmas.

[@Reinim-uk9pl]

I get the feeling that this is all a little over done. Sam you need to take off your Aussie bifocals. Germans are clever people. They will fix this. German unions provide unemployment insurance and many other benefits for their members. Not the same as Aussie or US unions that go on strike when they feel like it. VW may be having difficulties in China and therefore need to downsize. Your right, management did refuse to see this coming and have been slow to react. However they are at least doing something about it. Have you seen the ID7. 700km range. They have fixed the software issues. Its a pretty impressive EV. Just my two bits on this. Still think your the best Sam. Cheers.

[@andrewyoung4841]

From what I read they are not firing workers. Workers will not be replaced when they retire and they will offer workers early retirement

[@landcruiser801]

Yep it is natural losses over the next 5 years, early retirement schemes etc and not replacing workers plus workers are taking pay cuts.

[@alexd302]

VW has reached an agreement to reduce its workforce by 35000 by 2030. Achieved by early retirements and buyouts, avoiding involuntary layoffs and plant closures. This is part of VWs "Future VW' plan aiming to cut labour costs by E1.5 billion annually. they also plan to reduce production by 734000 units across its German plants. This is very different from what you have portraited here. I call bs on your article Mr Electric Viking. I have been a follower of yours for years but will stop if you start publishing total crap like this. Amen!

[@ricksworlddereaux2397]

VW overpaid their workers...in the past...i know a russian that worked there..and he earned same as a Doctor..about 6000$ a Months plus a extra XMas bonus of 5000$..they will cut half their Salaries to average about 3000$ ,then they will be back into good Buisiness..Made in Germany stands for high and good reputation..only Japan comes close..🤔

[@ArmadilloGodzilla]

That was an exceptionally well paid doctor. Probably in private practice because employed make maybe half of that.

[@ajett5081]

They are just making room to produce tanks and cannons etc.

[@rfengr00]

You mean drone targets.

[@show-me-the-details]

It's not skeptism of unions, it's facts, unions are a business, their business is to make money from lazy employees that think they are immune from being fired,

[@amandagrant4331]

It would be terrible if the union did not fight for workers' welfare.

[@vsFY2023]

Way to go Germany ! Keep Driving those progressive values

[@vwmechano]

10-15 thousand people retire annually from VW according to google. 35 thousand until year 2030 is not a scary number if they don't hire new staff. it is obvious they need to downsize, you kept saying it is the end of the road they are bankrupt and closing factories but that's not the case.

[@farmerpete6274]

running factories 'under-capacity' is the main problem, not the number of staff hanging around the production line

[@IzzyRumi]

American here, after owning 3 Saabs, over 30 years, I needed a new car so I bought an Audi Q3. I wanted a European car and everyone thought I was crazy! They thought I should have gotten a Lexus/Toyota...We'll see.

[@jonnieinbangkok]

Should have bought a BYD or Xiomi...oh right, Muricans aren't allowed to buy these world leading brands 😂 😂 😂

[@IzzyRumi]

@@jonnieinbangkok Meh.

[@rfengr00]

@@jonnieinbangkokunfortunately since he can’t, he should have bought a Toyota or Honda.

[@gagamba9198]

17 years on the same Lexus so far. Regular maintenance and the only problem I had was to replace the radiator.

[@rowanbroekman3929]

I would have bought a Tesla in America, but that's just me talking.

[@air-pala851]

Hi Sam, I used to work for Siemens in the early 2000's in Australia, spent a year in Germany and my job in OZ there where five people doing what I did on my own in Germany, it's not just the car industry they trained china in many industies, switch gear etc, I think they are about to go through a period they haven't experienced post WW2

[@csilver9625]

Herbert Deez tried to warn them years ago but their German Pride ended up just firing him from being the VW CEO. Looks like they should have listened to him

[@viku0810]

35000/600000 =~6% reduction. It’s hard for the people but nothing in numbers. To call it "catastrophic" with all the rhetoric you used is again a blind propaganda against german industry. Im not german but work in the automotive industry. we are in hard adaption times but the way everything is presented here is just propagate a bad feeling from this industry. you could also investigate how much invest previewed for china is going to India and why. if you look at those numbers you could call it also catastrophic…

[@maramé.r]

Europe is moving away from car usage. Many cities have seen a large increase in cycling, ebikes and use of small sized e-vehicles. Oslo, Amsterdam and Paris have seen enormous change in this respect. There is increased investment in more environmentally friendly public transportation and an obvious trend away from personal transportation. Europe doesn’t need as many cars as it has produced. Import tarifs on Chinese cars will also reduce imports from one of the world’s largest producers. Making stuff for which there is a limited or declining market makes no sense.

[@amandagrant4331]

Isn't this the EU's goal? No one can shout "protect the environment" and increase the use of cars at the same time

[@jamesdubben3687]

The way this is worded it all just sounds like line workers. What about management?

[@European-c2w]

Thats so romantic for Ursula VDL. Thats how her deindustrialisation of EU will help her zero CO2 emission

[@amandagrant4331]

She has no family working in VW.

[@macmcleod1188]

Businesses don't realize how valuable the Publics trust and cood will is until they lose it.

[@Zach-jt5zr]

I’m favoured financially with Bitcoin ETFs,Thank you buddy.$63,700 biweekly profit regardless of how bad it gets on the economy

[@Enderson21]

How please!? If it’s possible, I would appreciate if you show me how to go about it

[@Zach-jt5zr]

Venturing into crypto as a newbie was very difficult due to lack of experience which resulted in losing funds...... But James werden,restored hope his a good man

[@arc5195]

I’m not here to converse for him to testify just for what I’m sure of,he’s trustworthy and best option ever seen.

[@crystalsword16]

Such a genuine personality!! He is really a good investment advisor. I was privileged to attend some of his seminars. That’s how I start my crypto investment.

[@RasadnikRasadnik]

Wow, that’s very nice. Please how can i be able to reach out to your broker. My income is in a mess please

[@drwisdom1]

Mr. Viking says VW needs to be more efficient. But then he likes the idea of salary reduction instead of firings, which is the less efficient solution.

[@GreenIllness]

How is that less efficient when each spent around of money will reach longer in terms of output?

[@drwisdom1]

@@GreenIllness By definition, if you make the same amount with less you are being more efficient.

[@beemer1111]

Too many cars, too many car makers, prices too high, and cars depreciate like crazy now, and have become a terrible investment. Repair your older car, save your money. Buy classic pre electronic everything, that any mechanic can fix easily.

[@paulc6766]

Cars are never an investment. You can keep old cars going up to a point then spares become unavailable.

[@beemer1111]

@ yes, unless you are a DIY guy like me, they are a losing proposition. I have 3 old Merc’s, including an 86 300E, I have owned over 25 years. Has never been to a mechanic under my ownership, it will last another 25 years, whereas I might make it another 10 or 15 max.

[@fredleong3986]

That's what I do. There is no way I can afford a new car from any country especially with increasin complexity but decreasing reliability.

[@fauzanriez9472]

VW was too busy trying to beat Toyota sales and becoming world no 1 and didn't see what was coming instead.

[@galaxiedance3135]

VW feels like the final years of Blackberry. They should either look for another job or possibly create an account at O.F. I can't see anything else the employees can do.

[@JakobFischer60]

There is no firing of people in Germany. They reduce the number of emplyoees be not hiring those entering old-age pension and leaving for other reasons. The reduction was decided by the company together with the unions after long negotiations but supported by both. That is how we do it in Germany.

[@johnrday2023]

Volkswagon to fire over 35,000 (overpaid, uneeded, paid not to work) Union employees - over the next few years ! So much for their compromised union contracts that cannot protect their redundant 'seniority' workers. The company offered a 10% pay cut and keep every job, but union wanted the job losses instead of pay cut ! Crazy.

[@macmcleod1188]

I don't completely disagree with you but I'm shocked you don't mention the grossly overpaid executive classes of VW who steered the company into this situation.

[@y6cd3sdzHs1g]

According to AP; there will be no firings. Job cuts to be accomplished via early retirements and buyouts.

[@nox5555]

@@macmcleod1188 The german government did, not VW higher ups. Yes there is some overpayment and bad structures at VW but thats not the issue here. The German government and the EU forced VW to build more EVs and increased Taxes alot. Cut those taxes, end the EV mandate and VW will rise again.

[@macmcleod1188]

@nox5555 VW lied to their customers dude. That's going to be hard to recover from.

[@deanothedinosaur9069]

Sounds like investing in EV'S was a big azzz mistake.

[@paulc6766]

Not investing earlier was the big mistake, I think calling yourself a dinosaur illustrates the problem the German car makers have and now it is too late.

[@manwingchi9156]

Just look inside the car and the function, without bias, you know how different between Chinese car and Western cars. That is most people choose Chinese EV.😊😊😊

[@BBingo-v5i]

Nah

[@saul2187]

Ahh yes the expert Australian.

[@paulc6766]

He is just reporting what the German press is saying.

[@robertwoodhouse-bm7kt]

so sacking 35,000 over 5 years is 7000 a year, that won´t save 15bn a year in costs. I suspect most of that will be retirees who are not replaced.

[@Seventh7Art]

Kodak never taught legacy autos anything at all... The lesson has always been Adapt or Die.

[@az9az9az9]

15.6B divided with 35K is over 400k USD per employee, but employees only make 20-40k a year.

[@stuartharris5527]

That is over 5 years. Divide by 5 years, comes out 80k per year per employee, more realistic.

[@az9az9az9]

@stuartharris5527 I see, after taxes deduction it's realistic.

[@dkc_mr_sleep]

German autoworkers make between €60k and €70k per year on average (before taxes).

[@KeyshowJi]

20K euros a year? Your numbers are even better than Merkel’s😅 three years ago, the average Wolfsburg factory worker had cash compensation of 86000 euros for 32-36 hrs/wk i.e. NO OVERTIME. The average total cost of Porsche’s German factory workers is 145K euros, and VW’s is only slightly lower. However Porsche’s workers have much higher productivity. So multiply your numbers by 7, and you’ll be in the ballpark…

[@az9az9az9]

@KeyshowJi Ooou wow, that's net 4800€ a month. I worked in car industry 2006-2008 and my salary was 380€ a month, not in Germany though, but we sold parts to German car factories.

[@crashtestcal6484]

Sam, don’t you ever have reservations about what you’re doing here? The politics of all this is so fraught. To buy a Chinese EV is to support CCP ambition. Some would say that’s not good and others would say it is. I’m guessing you think it’s a good thing, yes?

[@farmerpete6274]

your comment is like saying buy a VW because you are supporting VW, Germany, and its creator of the company, the late Herr Hitler

[@rolandjosef7961]

They need to build as many Nuclear power plants to make energy cheaper which in turn makes cheaper to produce cars.

[@paulc6766]

Don't need to build they just need to reopen the ones they've got. I believe this is going to happen as reported on DW news.

[@markbuchbach9639]

Germany is deindustrializing because they lost access to cheap Russian gas.

[@johnrday2023]

Hold on, Germany did not "lose" access to cheap Russian gas supply, it was deliberately, planned 'sabotage' by US interests !

[@for-real-tho]

Milking the VW story hard 🐄🥛

[@roch145]

There’s something wrong with the cost savings that you mentioned. Laying off 35,000 people and saving $15 billion per year equals an annual saving of approximately $450,000 per employee. That seems incredibly high.

[@phillipsweeney7978]

How EVs destroyed the once mighty German Car industry - be careful what you wish for.

[@user-kc1tf7zm3b]

@@phillipsweeney7978 The era of German petrol cars are quickly coming to an end. Just like how Kodak was finished with the film business and became bankrupt in the 2000s. All high technology will eventually become obsolete, irrelevant and unwanted over time. Petrol cars are no exception. The simple reason for this is the world _entire_ world is rapidly shifting to EVs, whether Germany likes it or not. Nothing more. Building illusory ‘better’ petrol cars will do nothing for German economic fortunes.

[@pauldean8638]

Well Germany survived much longer than I predicted but still the inevitable happened . Kinda karma about it as Germans know what azov is about and there iconography. So it’s twice that racist poison has ruined Germany. Twice Russians faced that poison and twice they won ( they will win this time )

[@Bernd-b1y]

Wrong! They will fire almost no one, the 35k are jobs which will not get refilled for instance after an employee retires!

[@phizicks]

just because you make the most EVs, doesn't mean you make the best EVs. quality over quantity.

[@georgeorwell7291]

Socially acceptable is a very speciffic german term. It means that for example you fire people that are very close to retirement and give them a servarance and contribution to their pention fund, but their seat will not be filled again. Deleted after vaccancy.... things like that. Or a thing called Frührente

[@whiteknuckles]

What's a union good for?

[@farmerpete6274]

as the song said 'absolutely nothing!'

[@rowanbroekman3929]

Themselves, the union leaders.

[@aeromtb2468]

yet they protest elon and tesla for expanding

[@keithmartin1328]

This has echoes of British Leyland's problems back in the 1970s and 80s.

[@sonsautomotive]

german auto engineering is awesome....the problem is the follow thru....vw and audi give the life expectance of their vehicles is 8-10 years and 100,000 to 120,000 miles...so when you have finally made your last car payment you need a new one.....need a water pump on a vw bug...$1600.00...need a transmission (because of the double clutch) on a audi a4 with 110,000 miles $6000.00...need a battery changed...OH! now the car needs to be reprogrammed because to the cable disconnect has wiped out computer memories...EURO TRASH