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Volkswagen AG (VOW.F) and its IG Metall* and Works Council employee representatives for Passenger Cars, Commercial Vehicles and Group Components as well as its Audi and other brands have concluded a joint agreement – dubbed ‘Zukunft Volkswagen’ (Future) – that guarantees jobs as it reduces production capacities at Volkswagen AG’s German locations. Ultimately, but not now, the workforce will be cut by more than 35,000 at Volkswagen’s German locations by 2030. This includes a newly formulated “job security plan” through to 2030 at the troubled automaker.
“Cost savings for Volkswagen AG of more than €15 billion per year in the medium term,” VW said. “Of this, over €4 billion per year will come from the present negotiations on labor costs, structural and production measures and plant utilization. Labor cost effects alone amount to €1.5 billion per year.” However, the capital markets remain skeptical taking a wait and see attitude about VW’s ability to compete with higher quality and less expensive brands. AutoInformed notes that this is a five-year bet on the come line or the promise that material cost savings will be secured. VW stock closed yesterday at €88.85. A year ago on 23 December it was €93.95. Continue reading
Ram ProMaster Diesel Engines – CARB Fines FCA $4.2M
The California Air Resources Board (CARB) said this week it has reached a settlement agreement with FCA US LLC (FCA) of Auburn Hills, Mich., for $4,185,820 for violations of CARB’s air quality regulations. The FCA vehicles concerned include model year (MY) 2014 through 2016 Ram ProMaster 1500, 2500 and 3500 vehicles equipped with 3-liter inline-4 diesel engines.*
“CARB’s robust compliance testing ensures that auto manufacturers sell the exact vehicles that received certification for sale within California, without alterations made to skirt the state’s regulations and release excess emissions that harm air quality and public health,” said CARB Executive Officer Dr. Steven Cliff. Continue reading →