Volkswagen is set to ramp up production on electric vehicles, but at a tremendous cost to its laborers, unfortunately.
Volkswagen is one of the leading car manufacturers, and it is now outlining plans to dramatically reorganise, all in an effort to make more electric cars. If the company can pull this off, it might become the leading manufacturer of electric vehicles in the world over the next few years.
In a press release on 13 March, Volkswagen outlined its plan to ramp up research and development into electric vehicles. That plan, however, will rely on cutting up to 7,000 jobs by 2023 in order to free up the $9 billion in cash needed to support its ambitious plans. Volkswagen said the losses will be partly done to modernize administrative parts of the company through automation of routine tasks.
It also noted about 11,000 employees are due to retire in that time frame, and most of the jobs it needs to cut can be done simply by not hiring replacements for retiring employees. Keep in mind there's also a push for electric vehicles, as the EU and other countries around the globe are pressuring automakers to cut down on emissions. And Volkswagen is trying to go above and beyond these targets.
The automaker is hoping to begin selling 600,000 electric vehicles a year, and as part of its new plan, it's further hoping to produce 22 million electric vehicles in the next decade. To show how rapidly Volkswagen is innovating and adopting this shift in ideology, the car maker only sold 40,000 electric vehicles across all of its brands - including Audi, Porsche, and Skoda - in the past year.