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Volkswagen to cut 4,000 jobs over modernisation plan

by LLB Reporter
5th Jun 19 12:05 pm

The German car maker Volkswagen are to cut 4,000 jobs in Germany as part of a modernisation plan and will spend £3.5bn for digitalisation over the next four years.

This will result in no-production roles being hit and the car maker said to support the transformation programmes 2,000 jobs will be created.

Volkswagen are committing themselves to making all electric vehicles and Herbert Diess the chief executive said making zero-emission vehicles requires “30% less effort than one powered by an internal combustion engine.”

Ralf Brandstatter, the VW brand’s chief operating officer said, “Our digital transformation roadmap adds further momentum to the modernisation of Volkswagen.

“We are laying the sustainable foundation for making the company fit for the digital era.

“We are accumulating new digital expertise, and making all areas of our organisation faster, leaner and more competitive.

“At the same time, we are creating new, modern digital and agile jobs and improving our productivity.”

Adding, “The cost reductions accompanying the investments also help Volkswagen to finance the transformation from its own resources.

“The brand has set its sights on achieving an operating return on sales of 6% by 2022. That is three years earlier than originally planned.”

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