Mexican Media Brands
VW to Cut Jobs, Production In Russia
Volkswagen AG says slumping sales, a weak ruble and no sign of economic recovery have prompted it to lower output and trim the workforce at its assembly plant in Kaluga, Russia.
#economics #workforcedevelopment
Share
Volkswagen AG says slumping sales, a weak ruble and no sign of economic recovery have prompted it to lower output and trim the workforce at its assembly plant in Kaluga, Russia.
The factory, which has capacity to build 150,000 vehicles per year, makes two Skoda models and the VW Polo small sedan and Tiguan small crossover vehicle.
Effective next week the Kaluga facility will reduce production from five to four days per week. The plant also will switch from three- to two-shift operations in early May and close entirely for an additional eight days in May, according to the company.
The company is sending 120 workers from Kaluga to Germany for three months of training. It will transfer some plant workers to a warehousing operation in Moscow. VW further plans to allow contracts with about 150 temporary workers to expire.
Last year VW Group sales in Russia fell 13% to 260,700 vehicle, according to the Moscow-based Assn. of European Businesses. Demand in the first two months of 2015 plunged 27% to 27,500 units.
VW insist it hasn't changed its commitment to spend €1.2 billion in Russia by 2018. The investment includes a new engine plant at Kaluga that is currently under construction.
RELATED CONTENT
-
Jeeps Modified for Moab
On Easter morning in Moab, Utah, when the population of that exceedingly-hard-to-get-to town in one of the most beautiful settings on Earth has more than doubled, some people won’t be hunting for Easter eggs, but will be trying to get a good look at one of the vehicles six that Jeep has prepared for real-life, fast-feedback from the assembled at the annual Easter Jeep Safari.
-
On Zeekr, the Price of EVs, and Lighting Design
About Zeekr, failure, the price of EVs, lighting design, and the exceedingly attractive Karma
-
GM Develops a New Electrical Platform
GM engineers create a better electrical architecture that can handle the ever-increasing needs of vehicle systems
