Volkswagen to Lay Off Its Employees

The Volkswagen Group loses €2 billion every week due to the forced shutdown of enterprises under quarantine.

VW CEO Herbert Diess told about the problems caused by the coronavirus pandemic and the global economic crisis on the German TV channel ZDF. According to Diess, due to the downtime of factories around the world, Volkswagen loses about €2 billion a week.

Volkswagen to Lay Off Its Employees photo 2

Of the Volkswagen Group's 124 factories, 72 are located in Europe, including 28 in Germany. The work in all of them is stopped due to the COVID-19 epidemic. At the moment, production has been resumed only in Chinese factories, where the spread of the virus has significantly decreased. According to Diess, demand in China is growing again, but production at local factories reached only half of the planned level even before the crisis. At the moment, China remains the only market: sales have been stopped in all other countries.

The VW Group owns Audi, Bentley, Bugatti, Lamborghini, Porsche, Seat and Skoda. Last year, the Group sold 10.96 million vehicles. It also produces Ducati motorcycles, MAN and Scania trucks. In total, 671,000 people work at the conglomerate's factories. Some of them may lose their jobs if the COVID-19 epidemic cannot be stopped.

We need to rethink production. The discipline which we had in China we do not yet have at our German locations. Only if we, like China, Korea or other Asian states, get the problem under control then we have a chance to come through the crisis without job losses.

Diess said.

According to VW CEO, the company is looking for an opportunity to resume production in other countries while keeping workers in safe through maintaining distances from one another, stepping up hygiene and disinfecting.

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