2023 is definitely a complicated year for Volkswagen electric cars. Between falling demand, production difficulties and endless postponements of new models, cash flow is lacking, and a massive savings plan has just been put in place. The brand does not hide it: there will be job cuts.
Is there a good day in the world of electric Volkswagens in 2023? We are starting to doubt it, with the cascade of bad news that has been coming to us from the brand for several months. It started with order books that were struggling to fill, forcing factories to idle. We then had the announcement of yet another postponement of new models following software that failed to be released, before we learned that the new engines were also having production difficulties.
These gloomy prospects have very real consequences: factories may not be built, and cash flow is starting to run out. The words of Thomas Shafer, the CEO of Volkswagen, could not be clearer: “we are no longer competitive”. Result, Reuters informs us that a savings plan of 10 billion euros is on deck, and that it involves job cuts.
Early retirements…initially
Gunnar Kilian, the head of human resources, assures us: these job cuts will be made through early retirements until 2029, when outright layoffs could see the light of day if the situation does not improve. not.
The idea? Reduce headcount by getting rid of duplicates and positions considered “ballast” preventing the brand from achieving its results. If we will know more by the end of the year, the brand specifies that the 10 billion savings will not only relate to the reduction in the number of employees. We should probably expect a rationalization of the range and industrialization processes, even if the brand has not yet communicated on the subject.
Towards a bright tomorrow?
It is clear that Volkswagen cannot remain in this situation. Overtaken by Tesla and BYD in the field of electric cars, the brand must react to regain productivity and efficiency.
The fact remains that the brand has some great projects in the works: we spoke to you yesterday about the brand’s investment in China to develop entry-level electric cars, while the ID.2 at 25,000 euros remains planned. for 2025 – before, perhaps, an ID.1 which would arrive below 20,000 euros, but whose formalization has still not been announced.