Quake in Wolfsburg
Volkswagen needs a new Peter Hartz
Because the VW Group is missing its savings targets, the board wants to enforce the possibility of redundancies for operational reasons, perhaps even the closure of a German plant. The completely unthinkable may become reality.
One minute before twelve in Wolfsburg. Maybe even a minute after that. There is no other explanation for the considerations that have become known about ending the job security in force until 2029.
If this happens, the previously unthinkable will become reality. The most sacred cow that Volkswagen has in its stable would then be led to the slaughter. Even managers in Wolfsburg cannot be fired easily. Redundancies at Volkswagen for operational reasons. An earthquake in Lower Saxony would be programmed.
Of course, the German auto industry has huge challenges to overcome. The development of electric cars, for example, costs billions. The margin of electric vehicles is lower than that of conventional combustion models. Volkswagen is particularly suffering. The participation of the state of Lower Saxony in the group and the strength of the employee representatives make the company sluggish and cost money.
The location is reminiscent of the early 1990s. Even then, Volkswagen suffered from high costs and too much production capacity. The then VW boss Ferdinand Piëch had a falling out with the employee representatives. Everything boiled down to redundancies for operational reasons.
Then came Peter Hartz. Piëch made the Saarlander labor director. He introduced the four-day week and the reduction in weekly working hours from 36 to 28.8 hours. Wage costs were reduced and the workforce was retained.
VW needs a new Peter Hartz.
