VW, union agree to chop 35,000 jobs in Germany, avert strikes

LONDON (Reuters) – Volkswagen (ETR:VOWG_p) introduced sweeping modifications to its German operations, together with greater than 35,000 future job cuts and capability reductions in a last-gasp deal between Europe’s prime carmaker and unions on Friday to avert mass strikes.

Listed below are some reactions to the information:

GERMAN CHANCELLOR OLAF SCHOLZ:

“It is excellent news that the corporate and commerce unions have agreed on a very good, socially acceptable resolution right this moment.”

“Regardless of all of the hardships, it ensures that Volkswagen and its workers can look ahead to a very good future.

“It reveals that Germany stays a gorgeous location for trade and an necessary nation for the automotive trade.”

PORSCHE SE, VOLKSWAGEN’S TOP SHAREHOLDER:

“Porsche SE welcomes the settlement reached between the corporate and worker representatives. The agreed catalogue of measures makes a considerable contribution to a structural and sustainable discount in prices.”

“The results of the negotiations will result in a substantial enchancment in Volkswagen’s competitiveness. This has created a stable foundation for the mandatory future investments at Volkswagen.

“The duty now could be to systematically implement the measures from the start of the 12 months.”

ALEXANDER KRUEGER, CHIEF ECONOMIST AT HAUCK AUFHAEUSER LAMPE:

“At first look, it seems to be like a compromise that either side can kind of reside with … Different corporations are additionally pursuing job-cutting plans and VW appears to be only the start.

“Aggressive worth strain will in all probability require additional changes at a later date. All this exercise reveals how pressing it’s for Germany to make a contemporary begin when it comes to financial coverage.”

MATTHIAS SCHMIDT, EUROPEAN AUTO MARKETS ANALYST:

“I believe VW went into the discussions over-emphasising the measures they required in hoping to realize a win-win for either side the place each might declare this as a win.

“35K job cuts on a demographic curve as much as 2030 is probably going not sufficient and over a too (lengthy) timeframe to handle the present stagnation we’re seeing throughout the European market.

“I might say the unions can take extra from this than VW however realistically, due to the difficult construction of the corporate, this was in all probability one of the best they may have realistically hoped for.”

LOWER SAXONY STATE PREMIER STEPHAN WEIL:

“The compromise that has been reached can’t be taken without any consideration, however has been hard-earned. It’s now tied to clear prospects for Volkswagen in Germany and, above all, in Decrease Saxony. This additionally applies with regard to future areas similar to battery-cell manufacturing.

“The compromise was tough for everybody concerned, nevertheless it was urgently wanted.”