VW Saxony Chief: We Need to Become Significantly More Productive - and Set the Course Now
The vehicle production at Volkswagen in Zwickau needs to become significantly more productive from the perspective of VW-Saxony CEO Danny Auerswald. On one hand, labor costs need to decrease. On the other hand, the degree of automation must be increased, Auerswald said at the Automotive Forum in Zwickau. The course must be set now, he urged, so that the location is recommended for future model generations. He also sees potential in the introduction of artificial intelligence in production.
Due to high production costs in Germany, the Volkswagen Group is planning a strict cost-saving strategy. The automaker intends to cut tariff wages by ten percent. According to the works council, the company management also plans to close at least three plants and reduce capacity at the remaining locations. This is met with strong resistance from employees, including in Saxony. Volkswagen has around 12,000 employees at three locations in Saxony: Zwickau, Chemnitz, and Dresden.
IHK President: Do not decide based on postal codes
The president of the IHK Chemnitz, Max Jankowsky, urged Volkswagen to quickly provide clarity on the future of individual locations. The current information vacuum is very damaging. On one hand, there is great fear among employees, and on the other hand, it complicates planning for suppliers, Jankowsky explained. It must not be that VW employees celebrate Christmas with their families at the end of the year without knowing how their future will proceed. Therefore, a clear statement from the company leadership in Wolfsburg is needed.
“Decisions must be made based on key figures, not postal codes.”
According to Jankowsky, Volkswagen's two major locations in Saxony - the car factory in Zwickau and the engine plant in Chemnitz - are very well positioned within the company.
Car production involves many supplier companies. There too, further job cuts in Saxony are expected, explained Dirk Vogel from the Automotive Suppliers Network Saxony. According to the information, there are more than 800 companies in Saxony that create value in the automotive industry. In Southwestern Saxony alone, around 560 companies with more than 62,000 employees are accounted for - not including the vehicle manufacturers themselves. These include companies that manufacture vehicle parts, freight forwarders, developers, machine and tool builders.
Car Production Far Below Previous Numbers
In addition to the technological shift to electromobility, automakers are being challenged by new competitors, mainly from China. As a result, car production in Germany is far removed from previous numbers. According to the German Association of the Automotive Industry, 5.75 million vehicles were built domestically in 2016, but last year it was just 4.11 million. A forecast suggests it will be the same number this year.
Electric Cars: Further Increase Predicted for 2025
For electric cars, the VDA expects a further increase in production in Germany by 2025. This year, around 1 million purely battery-electric vehicles are expected—out of a total of approximately 4.11 million vehicles. In 2025, this figure is expected to rise to 1.4 million pure electric vehicles. Despite the continued ramp-up, many combustion engines will still be on German roads in the future. Currently, the share stands at 95 percent, explained Eric Woydte, the advisor for climate protection, hydrogen, and fuels at the VDA. To achieve climate goals, the ramp-up of alternative fuels must also be accelerated. It is not only about e-fuels, but also about biofuels and green hydrogen.
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