Volkswagen and its German works council have agreed a deal that will make the car maker more efficient.
“Volkswagen will become quicker and more efficient with this agreement supported by management and staff,” personnel chief Horst Neumann said in a statement cited by Reuters. “It is an important milestone in restructuring the Volkswagen brand.”
VW called the accord “the start of a lasting process and, as a first step, paves the way from 1 August, 2006, for a new, uniform production system for the brand’s German plants”.
A VW spokeswoman told the news agency the accord had nothing to do with negotiations it is conducting with the IG Metall union over longer working hours, but rather sought to set unified standards for such things as the time needed to complete specific jobs. She gave no timetable for completing a review of standards, noting it was only just beginning.
Reuters noted that Volkswagen said recently up to 20,000 jobs in its German workforce could be at risk unless the company brings down labour costs that are the highest in the global car industry.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataVW brand group head Wolfgang Bernhard said: “With this instrument we have the chance to raise our quality, boost productivity and ensure more satisfaction for staff and customers. This Volkswagen Way will be firmly anchored in corporate strategy.”