EMCC European Monitoring Centre on Change

Volkswagen

Company/Organisation:
Volkswagen

Geographic Location

Country: World

Company

Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Number Employed: 330000
Group: Volkswagen

Employment Effects

Announcement Date: 25-02-2004
Planned Job Reductions min: 5000
Planned Job Reductions max: 5000
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-02-2004
Foreseen End Date: 01-12-2005

Additional Information

Automaker Volkswagen warned for "miserable" earnings in the 2004 first quarter and announced a cost-cutting programme to eliminate 5,000 jobs. Volkswagen has to face an intense price competition and a weaker dollar in the North American market, as well as soft consumer demand in Germany. At the company's annual news conference at its Wolfsburg headquarters, chief executive Bernd Pischetsrieder outlined plans to suppress an additional 2 billion in costs out of the company by 2005. The company will carry out the job cuts by not replacing workers who quit or retire and will seek to accelerate efforts to share parts among different models and turn its loss-making commercial vehicles division around. The programme 'ForMotion' intensified a current efficiency effort. About 2,000 to 2,500 of the job losses would come in Germany.