Thursday, September 5, 2024

Volkswagen's Choice: Fire Union Workers and Cut Costs, or Go Bankrupt

If dealing with these internal problems is the expressed preference, the revealed preference is more to go after China.

The only innovation we have seen in Germany is in diesel cheating.

Diesel is Dead. Flashback April 28, 2018: Bosch Announces Better Diesel Engine: Sorry Germany, Diesel is Dead. Sorry Bosh, diesel is dead. Upgrading diesel technology is mostly a waste of time and money even if Bosh is telling the truth this time.

Daniela Cavallo, the union leader who heads Volkswagen's works council, vowed Monday to fight the move, which is a prerequisite for any potential plant closure in Germany.

Volkswagen can't easily dial back its profit-sapping EV investments or production because its cars need to meet much stricter European emissions standards starting next year.

Its fleet carbon emissions last year were 24.2% higher than they will need to be in 2025, according to data collated by Bernstein, compared with 19.6% for Mercedes-Benz and 9.7% for BMW. Labor costs in Germany are the highest in Europe, according to an analysis by the German Association of the Automotive Industry.

In Hungary, where BYD is building a factory to avoid European Union tariffs, auto workers are paid only €16 an hour. 

https://mishtalk.com/economics/volkswagens-choice-fire-union-workers-and-cut-costs-or-go-bankrupt/

No comments: