Thursday , March 30 2023

Volkswagen: The Supervisory Board decides to invest billions of euros in the economy


Production line for E-Golf in Wolfsburg


Production line for E-Golf in Wolfsburg

It's about transforming German factories into electronic car factories, a new electric entry model and huge sums: Volkswagen's supervisory board will decide Wolfsburg on billions of years of the carmaker's investment program for the next five years.

A year ago, Volkswagen announced that it will invest more than € 34 billion in the development of cars and cars as well as mobility and digitization services by 2022. At the same time, the solution to the diesel fuel scandal has already cost Group a good of 27 billion euros.

VW chief Herbert Diess recently warned that electronic strategy could be more costly than planned. Therefore, efficiency must increase: "We need bigger profits to finance our future."

Beginning with the production of electric cars by the end of 2019

Volkswagen wants to increase the production of electric cars by the end of 2019 – then launch the first all-electric model of the Zwickau ID family on the line. By 2025, the car manufacturer's brands want to bring the first 50 new electric models to the beginning.

Production in Hannover and Emden

In the future, electric cars will be built in both VW locations in Hanover and Emden. The Passat previously manufactured in Emden could be moved to the Czech Republic. VW also wants to bring an electronic car smaller than 20,000 euros. It was not yet clear whether this Stromer would be built in Emden in the future. In Hanover, ID Buzz is set up.

To mitigate the change for the approximately 9,000 employees in Emden and about 16,000 employees in Hanover, job security was agreed by the end of 2028. At the same time, the number of employees should gradually decrease – through partial retirement.

The background is that fewer production steps are required for the construction of electric cars and thus fewer employees. VW HR Director Gunnar Kilian told the German press agency, "I'm convinced that the conversion will go well."

La / dpa / Reuters

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