Dieselgate: Volkswagen Allegedly Considering Lay-Offs at Pune Facility

Volkswagen CEO Matthias Muller had said in 2015 that funds set aside to deal with the emissions scandal might not be enough and that lay-offs were likely to follow.

By Kritika Sethi

1 mins read

Published on May 2, 2016

Highlights

The carmaker is still struggling to level up with the financial brunt
It has already cut shifts at plants in Argentina, Russia, Mexico & Brazil
Volkswagen will also buy back 5 lakh affected cars in the US

Volkswagen, scarred by the emissions scandal, has been occupied with not only damage control and rectification, but also survival. Though the German carmaker set aside a fixed amount, which includes $8.8 billion to buy back and/ or fix cars affected by the cheating software, to deal with the aftermath of the scandal, it is still struggling to level up with the financial brunt. Matthias Muller, Volkswagen CEO, had said in October, 2015 that it would be difficult to arrive at a definite 'cost' arising from penalties, lawsuits, etc.. Muller had further added that the funds might not be sufficient and that lay-offs were likely to follow. VW has already cut shifts at its plants in Argentina, Russia, Mexico and Brazil. And according to a recent report by ETAuto, the company's plant in Pune may also see job cuts. ET quoted a letter sent by Volkswagen India's management to its employees that said, "This is the time for survival of the fittest. If targets aren't met, the company may have to do away with extra workforce at the Chakan, Pune, plant." It further added, "It could eventually force us to come down from three shift operation to two and, in worst case, to a single shift operation. Needless to say, this will directly have an effect on our jobs here at the Pune plant, since a single shift production will require considerably lesser workforce." This news seems a tad surprising considering the fact that the company only recently added a third shift at its Pune facility in anticipation of the Volkswagen Ameo sedan's launch in the country. Additionally, with the integration of the third shift, the carmaker also added approximately 800 new employees and expects to add more as its production goes up through the year.