Volkswagen earmarks €16 bln for job cuts, plant closures, source says
The plan would set aside up to €10 billion for severance and retirement schemes as Volkswagen cuts about 60,000 jobs worldwide.
- On Thursday, Volkswagen estimated the total cost of job cuts and potential plant closures at around €16 billion , a person familiar with the matter said, as part of a landmark restructuring pact struck last week.
- Europe's largest carmaker has embarked on its biggest restructuring ever, citing an "existential battle" against competition from China, biting tariffs, and overcapacity in the market.
- Volkswagen plans to set aside up to €10 billion by 2030 for eliminating roughly 60,000 jobs worldwide, with funds covering retirement schemes and severance packages.
- Spiegel reported that phasing out production at four German plants—Emden, Zwickau, Neckarsulm, and Hanover—would cost about €6 billion for the "possible cessation of vehicle production."
- Alternatives are being explored for four German plants that will eventually run out of models over the next decade, alongside a planned reduction of around 50,000 additional positions.
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Volkswagen braces for €16 billion in costs for cutbacks, possible factory closures, source says
BERLIN, Sept 10 (Reuters) - Volkswagen estimates the total cost of job cuts and potential plant closures, part of a landmark restructuring pact struck last week, at around €16 billion ($18.6 billion), a person familiar with the matter said on Thursd...
The planned corporate conversion could be expensive. The possible out for four plants is to cost six billion euros. In addition, there are ten billion for the job reduction.
Volkswagen earmarks €16 bln for job cuts, plant closures, source says
Volkswagen estimates the total cost of job cuts and potential plant closures, part of a landmark restructuring pact struck last week, at around €16 billion ($18.6 billion), a person familiar with the matter said on Thursday.
According to an insider, Volkswagen estimates the cost of the possible closure of four plants in Germany and the reduction of tens of thousands of jobs worldwide to a total of 16 billion euros. Expenditure of six billion euros is planned for the expiry of production in the four plants, another ten billion euros for the reduction of up to 60,000 [...]
The plan includes exploring alternatives for four German factories and a reduction of around 50,000 additional jobs.
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