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Home Volkswagen feels pressured by Tesla in the electric car race and may lay off 30 employees

Volkswagen feels pressured by Tesla in the electric car race and may lay off 30 employees

14 October 2021 to 10: 35
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Volkswagen - electric cars - Tesla - dismissal
Volkswagen suspends production in Brazil because of the worsening pandemic – credits: Motor1

After pressure from Tesla, multinational Volkswagen may fire up to 30 employees as a result of the modernization of its units to accelerate electric mobility

According to a report published by the German newspaper Handelsblatt, Volkswagen CEO Herbert Diess wants its main plant converted to produce only electric cars, and suggests cutting up to 30.000 jobs, for which supervisory board members, taken by surprise, they protested vigorously. Pressure from the automaker Tesla would be one of VW's main concerns.  

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“There is no doubt that we have to deal with the competitiveness of our factory in Wolfsburg in view of new market entrants. The debate is ongoing and there are already many good ideas. There's nothing concrete about layoffs," said VW's Communications President Michael Manske when asked about the matter.

Volkswagen plans to invest in batteries and charging stations

Volkswagen is also considering investing in energy and car charging businesses, in addition to existing IPO plans for its battery division. Schmall said nothing has been decided yet and that it will likely take up to two years for the new companies to be established and really ready for the stock market.

"We also have to think in terms of general systems and hurry up with creating our own charging network, solar systems for green charging stations and reducing carbon emissions," said Schmall, referring to pressure from Elon's carmaker. Musk, Tesla.

At a meeting of Volkswagen's supervisory board at the company's headquarters in Wolfsburg (Germany), the company's CEO, Herbert Diess, declared that the automaker could lose 30 jobs if it made a transition too slowly to electric vehicles, according to news reports. by the Reuters agency. Tesla produces its car, Model 3, in 10 hours, while Volkswagen takes 30 hours to make an ID.3.  

Michael Manske, CEO of Volkswagen Communications, issued a statement today, saying, "There is no doubt that we have to address the competitiveness of our Wolfsburg factory in view of new market entrants," singling out Tesla and Chinese automakers such as NIO, which launched electric cars in Norway recently.  

Tesla sets new standards within the automotive industry  

Manske added: "Tesla is setting new standards for productivity and scale at Grunheide." He was referring to Tesla's first European Gigafactory, which is being built near Berlin. When operational, the facility is expected to have a maximum capacity of producing between 5.000 and 10.000 cars every week, which alone is more than double the entire production of electric cars in the country last year.  

Denying the job cuts report published in Handelsblatt today, Manske said: “A debate is ongoing and there are already many good ideas. There are no concrete scenarios.” Volkswagen's works council also denied such reports, calling them "absurd and baseless".  

The Volkswagen factory in Wolfsburg is the largest in the world. Currently, it has more than 50.000 employees to manufacture ICE vehicles. Volkswagen aims to manufacture the Project Trinity electric sedan from this facility from 2026, for which it must undergo modifications.  

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