Volkswagen’s CEO, Herbert Diess, one of the world’s largest automobile companies, has warned that if the company does not increase production of electric vehicles (EVs), about 30,000 employees may have to be laid off. Herbert told the supervisory board meeting held last month that competition has increased with the arrival of new companies like Tesla in the German market.
US electric car maker Tesla plans to produce about half a million cars per year in Germany with 12,000 employees. In comparison, Volkswagen produces seven lakh cars at its Wolfsburg plant with around 25,000 employees.
A Volkswagen spokesperson said the presence of Tesla and other automobile companies in Germany calls for increased production of electric vehicles. He said that it has not yet been decided how many jobs can be reduced in this process.
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He said there is no doubt that the company will have to increase efficiency at the Wolfsburg plant.
“Tesla is setting new productivity standards,” the spokesperson said.
Tesla’s plant in Grunheide, Germany is under construction. Its peak capacity will be around 10,000 cars a week.
A spokesman for Volkswagen’s workers council said he would not comment on Herbert’s remarks. There is no reason to cut 30,000 jobs, he said.
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