Volkswagen, a German car maker, is still dealing with consequences of diesel engine emission scandal and has done huge settlement of $15 billion to the owners of the vehicles as a compensation.
Volkswagen is again in talks due to announcement of cutting 30,000 jobs, wherein the maximum layoff will be in Germany itself with a figure of 23,000 employees.
The overall layoff is planned to be implemented till 2020 aiming to take a fresh start by developing electric and self-driven cars. Volkswagen claimed that this major decision has been taken under the oath of creating more 9,000 jobs for the future projects based on electric cars.
The Union leaders agreed to this cut-off decision based on the promise made by the management to provide new jobs and investment in Germany plant.
Bernd Osterloh , one of the top representatives in Germany, stated that “The electric vehicle of the next generation will be assembled in Germany, not overseas.”
Talking about the numerical figure based on the total of 30,000 employees getting layed off, the company claims that this would save about 3.9 billion annual expenses, which would be an attempt to regain the loss caused due to emission scandal.
The management has also affirmed to build an electric SUV plant at Wolfsburg, Germany. Various other key components such as electric motors will be assembled at Kassel, Germany, and the battery cell at Salzgitter, Germany, the source said.
Matthias Mueller said “The brand needs a shake-up and this is precisely the future prospects that have to be turned”.
However, it seems that the emission scandal has turned out to be one of the mediums for the major technological phase shift resulting in assumptions that Volkswagen will now be focusing on making more electric motors and batteries compared to gear boxes and engines.
Only time will show us would this decision taken by Volkswagen will change their present picture in future.