Volkswagen to slash more jobs to accelerate electric vehicle plans

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Volkswagen to slash more jobs to accelerate electric vehicle plans

On Tuesday, the 12th of March 2019, the German Carmaker Volkswagen had issued a statement saying that they would be slashing more jobs, as it had been hankering to speed up its less labor-intensive electric car and would be reviewing its extensive portfolio of brands to reverse a plunge in the profit margins.

The German automaker had also added that they had already planned to launch about 70 new electric vehicle models by 2028, as an attempt to putting it at the front of carmaker’s shift to zero-emission vehicles from conventional diesel-run vehicles, as the Wolfsburg-based automaker had been vying to erase its 2015 emission cheating scandal, in which it attempted to cheat US diesel emission tests.

Never the less, the Volkswagen had also said that investments for revamping manufacturing plants and a growing uncertainty in the currency market alongside a sales slowdown prompted by new emission certification tests, had led to a sharp decline in its operating margins of VW, Audi, Skoda and Porsche marque last year.

Apart from that, the Chief Executive of Volkswagen AG, Herbert Diess said that they had been reviewing an extensive portfolio of brands including Lamborghini, Bentley and Ducati, concomitantly considering whether they could divest some of their non-core businesses.

Followed by the news of further job cuts and revising its wide-ranging portfolio alongside a probability of shutting down some of their non-core businesses, Volkswagen’s share closed the day 2.68 percent down at 143.98 euros, listed in Frankfurt.