Volkswagen Reduces Shift Timing and Lays Off Workers at Russian Plant

Volkswagen, the German automaker, has announced plans to reduce shift timing and lay off about 150 workers at its Russian plant in an attempt to cut costs due to the market downturn. The decision comes as Russia's economy has been heavily affected by the fall in oil prices and Western sanctions over Ukraine, leading to a sharp drop in car sales for the company last year. Volkswagen's Russian plant will be operating four days a week from April to July and will subsequently reduce shifts from three to two, with some production suspended for two weeks in May.

Key Takeaways:

• Volkswagen will reduce shift timing at its Russian plant from three to two from May, with some production suspended for two weeks in May.
• The company will lay off about 150 workers and not renew contracts with them.
• Volkswagen will offer some employees the chance to move to its new auto parts warehouse in the Moscow region or an engine plant, scheduled to open later this year.
• The Russian plant will operate four days a week from April to July due to economic challenges.
• Volkswagen expects the Russian market to have significant growth potential long-term.
• The company cites a weak economy, significant price increases, and high interest rates as reason for its decision.

Statistics:

• 150 workers will be laid off by Volkswagen at its Russian plant.
• The Russian plant will reduce shifts from three to two from May.
• Volkswagen will suspend production for two weeks in May (May 5-8 and May 12-15).
• The plant will operate four days a week from April to July.
• Volkswagen's Russian auto market sales dropped sharply due to economic challenges.

Sources:

• Reuters
• Car Trade India
• HT Syndication
• HT Media Ltd.