Friday, November 18, 2016

VW will cut 30,000 jobs worldwide – Deutsche Welle

Volkswagen intends to cut 30,000 jobs by the year 2020 as part of a massive savings plan intended to help the giant automobile German to recover from the scandal of the emission of exhaust gases known as “dieselgate", reported today (18.11.2016) a German newspaper.

The plan, which has been agreed with union representatives after months of tortuous negotiations, will lead to an annual saving of 3,700 million euros (3,900 million dollars), according to the journal of business, Handelsblatt. Two-thirds of the job losses will occur in the plants of Volkswagen in Germany, the other in north America and Brazil, the report said, citing sources close to the talks. There will be No forced layoffs, most of the cuts will come from retiring employees, added the sources.

Dieselgate

The group entered into a deep crisis last year after admitting that they have installed software on some 11 million vehicles with diesel engines in the world that could detect when they were being subjected to testing regulations and “reduce" the emissions to make the cars reported to be less polluting than they were.

Volkswagen, which employs some 600,000 people in all the world, has allocated about 18,000 million euros to cover the consequences of the scandal, but experts believe that the final invoice of the buy-backs, repairs and legal costs will be far greater.

FEW (AFP, dpa)

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