VW

30,000 could be out of a job with imminent transition from Volkswagen to electrification

If Volkswagen takes steps in the transition to electric vehicles, this delay could put 30,000 jobs at risk. The warning was issued by Herbert Diess, the chief executive of the German automaker, reported the German newspaper Handelsblatt and confirmed it to Reuters (adding additional comments by a spokesman). Diess indicated, at that meeting with the members of Volkswagen's supervisory board, that to avoid this scenario the group is accelerating the transition to the manufacture of electric cars.

A spokesman later confirmed to Reuters that Herbert Diess reviews himself in this analysis because the entry into the German market of new manufacturers, such as US-based Tesla, is putting increased pressure on Volkswagen. Tesla, for example, is planning to produce 500,000 cars a year in Germany, a country where it employs 12,000 people. In contrast, Volkswagen employs 25,000 people at the Wolfsburg plant, which plans to build 700,000 cars (none of which is electric).

“There is no doubt that we have to resolve the issue of competitiveness of our Wolfsburg plant in light of the entry of new competitors,” confirmed a company spokesman, referring not only to Tesla but also to Chinese brands which are also in the electric car market. It is not until 2026 that the Wolfsburg plant will start producing electric vehicles, an electric-powered sedan that has yet to be named but that is being developed under the so-called “Project Trinity”.

What does “solving the competitiveness issue” mean? The spokesman declined to comment: “An internal debate is ongoing and there are already many good ideas. But there are no concrete scenarios on the table”.

Autonews