Volkswagen announces up to 7,000 job cuts

Volkswagen accelerates electric car push

On Tuesday, the group's CEO Herbert Diess revised the numbers and announced Volkswagen plans to launch a total of 70 new electric models over the next ten years, increasing the sales target for this segment from 15 million to a staggering 22 million, or an average of 2.2 million per year.

"Volkswagen will be boosting the pace of its transformation. taking important steps this year to strengthen competitiveness on a sustained basis", the flagship brand of the mammoth VW group said in a statement.

The German carmaker said Wednesday it will eliminate as many as 7,000 positions - with measures including early retirement and not filling vacant positions - for an annual profit gain of €5.9bn ($6.7bn) starting in 2023.

The new cost cutting drive is a continuation of Volkswagen's 3 billion euros Zukunftspakt savings plan.

It said that, at the same time, it will create some 2,000 new jobs in technical development.

Ralf Brandstätter, Volkswagen's chief operating officer, said that the company needed to "do more to meet the challenges" the company is facing in the upcoming years, adding that the changes would make Volkswagen "fit for the electric and digital era".

VW's electric auto portfolio is limited at the moment, but the company hopes to sell at least 1 million battery-powered vehicles by 2025.

Volkswagen said it will launch nearly 70 new electric models by 2028, accelerating its rollout of zero-emission cars. Order books for electric ID hatchback open on May 8 and sales chief Juergen Stackmann said feedback from dealers is so strong that the model might be sold out before its official presentation in September. Zwickau will also build electric cars for Volkswagen's Seat and Audi brands.

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