In the future, Volkswagen will focus on the direction of autonomous driving, new energy, new digital, etc., and hope to lead the entire automotive industry.
According to foreign media and other media reports, the German Volkswagen Group announced on Friday that it will reorganize the mass passenger car brand on a large scale, and lay off up to 30,000 people by 2021 in the next five years. It is reported that this is a major decision of Volkswagen after the exposure test cheating scandal, which means that Volkswagen Group will increase profits through layoffs, and then fund the development of electric vehicles and autonomous driving technology.
According to relevant news released on November 18th, Volkswagen plans to achieve the goal of increasing the profit of the same-name brand by 3.7 billion euros per year by 2020, and increase the pre-tax sales profit margin from less than 2% in the most recent fiscal quarter to 4. %.
The Volkswagen Group's layoff plan includes 23,000 layoffs in Germany. With a view to layoffs and other measures, the productivity of the Volkswagen German plant will be increased to 25% in the next few years. In addition, according to the "German Business" previously reported that as of 2020, Volkswagen will lay off 30,000 people, or save about 4 billion euros. Among them, in addition to the layoffs of 23,000 people in Germany, other countries will also cut 10,000 employees, and layoffs are mainly concentrated in the Americas.
The Volkswagen layoffs plan also mentioned that in the next few years, the Volkswagen brand plans to invest about 3.5 billion euros in its German plant, focusing on the development of electric vehicles and digital mobile business, and such new business will be created. Thousands of new jobs.
As of press time, the German trade union leaders agreed to the Volkswagen Group's layoff plan, in exchange for Volkswagen's commitment to produce electric cars and batteries in Germany. Among them, the layoff plan will be realized through natural attrition and early retirement. In addition, the German factory will assume about 23,000 layoffs, but will also add about 9,000 new jobs.
In September 2015, the US Environmental Protection Agency (EPA) found out that Volkswagen's emissions test was cheating, which triggered a wide-ranging crisis of confidence, causing Volkswagen's stock to plummet. Former CEO Wen Deen was forced to cite resignation. The “Made in Germanyâ€, which has always been known for its reputation, suffered huge losses. This incident shocked the entire automotive industry.
As a giant in the automotive industry, Volkswagen has performed poorly in the new car sales market in recent years. With the development of new economy and new technologies such as Industry 4.0, the traditional manufacturing industry is constantly impacting, and the transformation is imminent. Volkswagen is also beginning to realize that traditional car manufacturing cannot get rid of the transitional difficulties it is currently experiencing. As can be seen from this layoff plan, in the future, Volkswagen will focus on the direction of autonomous driving, new energy, new digital, etc., and hope to lead the entire automotive industry.
Volkswagen is constantly striving for transformation and exploring new directions for development. In mid-June 2016, the Volkswagen Group Management Board released the “TOGETHER – Strategy 2025†in Wolfsburg, Germany, which is known as the largest strategic plan in the history of the Volkswagen Group. .
It is understood that the main goal of the strategy is to transform Volkswagen from a car manufacturer into a travel service provider, so that the city will become an intelligent hub, allowing drivers to become service users. Mainly concerned about the intelligent network connectivity, electrification, and sharing of automobiles. Among them, the content of car sharing is to establish a cross-brand mobile travel solution business, with on-demand travel services as the entrance, and about car service as the core, to carry out unmanned taxis, car sharing and on-demand transportation services.
"Working together - 2025 strategy" will transform Volkswagen Group from the secondary industry to the tertiary industry. The main objectives of this plan are:
1. More than 30 electric vehicles will be launched by 2025, with annual sales reaching two to three million units;
2. Develop battery technology, digitalization and autonomous driving technology to become a new group competitiveness;
3. Rapidly expand new mobile travel business and obtain billions of euros in revenue;
4. Reorganize the parts business department and gradually transform from a pure commercial vehicle manufacturer to a smart vehicle supplier;
5. Operating profit margin will reach 7% to 8% by 2025, and the capital business of the automotive business sector will exceed 15%.
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