STUTTGART (dpa-AFX) - Porsche's general works council chairman, Ibrahim Aslan, believes the sports car manufacturer's German locations are in danger. "The board has not yet presented a vision for the future of our German Porsche locations, but is threatening to relocate development and production to countries with significantly lower wage levels," said Aslan in Stuttgart, referring to the ongoing discussions about further cost-cutting measures. "This puts one in four jobs at Porsche AG at risk."
The statement refers to the main plant in Stuttgart-Zuffenhausen, the development center in Weissach in the district of Boblingen, and several smaller locations. The company employs around 23,000 people there. Mathematically, this means that up to 5,500 jobs could be at risk in the long term. Aslan did not want to give a specific number when asked.
The employee representatives informed the workforce this week at works meetings about the status of the talks on the so-called future package. An information event was already held at the main plant on Tuesday. A meeting was scheduled for the afternoon at the Weissach development center.
Concessions in exchange for longer job security?
Aslan wants to secure job security until at least 2035 in the talks. He told the German Press Agency with regard to the board's demands: "I'm not Santa Claus, who grants wishes." The current job security measures are valid until mid-2030. If the measures expire, redundancies for operational reasons would be possible.
Among other things, the board is proposing the outsourcing of entire divisions and model series in the talks on a further austerity package. Aslan said that the future of the employees was more important than simply increasing profits. This would require investment in the locations. The workforce was unsettled and dissatisfied. The works council also fears that logistics could be outsourced in the future.
Schedule for further negotiations unclear
The new round of cost-cutting measures was initiated by outgoing Porsche CEO Oliver Blume. "We very much welcome the fact that Oliver Blume announced at the works meetings on behalf of the Executive Board that he intends to continue the talks on an equal footing with the aim of finding common solutions." It is hoped that Blume's statement that the Executive Board stands by the German locations has also been received by the negotiators. No timetable for further negotiations was given.
A company spokesperson recently stated that the automotive industry is facing immense challenges and that competitiveness will determine the future of Porsche. Action must be taken in all areas. "In view of the changed conditions, significant cost optimizations are absolutely necessary." This is being discussed with the employee side as part of a second future package – "still confidential."
In the past, the company had repeatedly emphasized that it wanted to discuss reducing personnel costs with employee representatives. However, neither the company nor the general works council was willing to provide any information on the amount of savings targeted.
1,900 jobs to be cut by 2029
It was only in February that the VW subsidiary and employee representatives agreed on an initial savings package. According to this, 1,900 jobs are to be cut in the Stuttgart region by 2029 – in a socially acceptable manner to safeguard employment. In addition, the contracts of around 2,000 temporary employees are expiring.
Porsche has had a turbulent year. In addition to declining sales, a change in strategy is weighing on the company: ambitious electric vehicle targets have been scrapped, and combustion engines are making a comeback. The measures are costing billions and have almost completely eaten into the group's profits so far. In addition, the executive board has recently undergone several changes, including at the top. In January, Michael Leiters will take over from Blume, who wants to concentrate on his role as Volkswagen CEO. To make matters worse, the Zuffenhausen-based company was also dropped from the German stock market index DAX.
