The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture For Transport Equipment Manufacture Of Motor Vehicles, Trailers And Semi-Trailers 29.1 - Manufacture of motor vehicles
5,000 jobs Number of planned job losses
Announcement Date
25 February 2004
Employment effect (start)
1 February 2004
Foreseen end date
1 December 2005
Description
Automaker Volkswagen warned for "miserable" earnings in the 2004 first quarter and announced a cost-cutting programme to eliminate 5,000 jobs. Volkswagen has to face an intense price competition and a weaker dollar in the North American market, as well as soft consumer demand in Germany. At the company's annual news conference at its Wolfsburg headquarters, chief executive Bernd Pischetsrieder outlined plans to suppress an additional 2 billion in costs out of the company by 2005. The company will carry out the job cuts by not replacing workers who quit or retire and will seek to accelerate efforts to share parts among different models and turn its loss-making commercial vehicles division around. The programme 'ForMotion' intensified a current efficiency effort. About 2,000 to 2,500 of the job losses would come in Germany.
Sources
12 March 2004: Financial Times Deutschland
27 February 2004: Financial Times Deutschland
9 March 2004: Financial Times Deutschland
26 February 2004: Les Echos
Citation
Eurofound (2004), Volkswagen, Internal restructuring in World, factsheet number 60000, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/60000.
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