German business newspaper Handelsblatt reported that Diess proposed to members at the company’s supervisory board meeting on September 24 to turn factories in Germany into electric car centers and reduce the number of staff by around 30,000.
The report stated that workers, union and state government representatives on the board were surprised by the proposal.
Electric cars require fewer workers because they have fewer parts than petrol-powered cars.
In recent years, the arrival of groundbreaking technologies in the automobile industry from China and the USA has been the subject of debate in the German public, while German manufacturers announced that they would invest more than 150 billion euros for electric cars after these discussions.
On the other hand, it is also claimed that Tesla produces faster and more efficiently than Volkswagen.
While 25 thousand employees produce 700 thousand cars per year in Volkswagen’s factory in Wolfsburg, USA-based Tesla plans to produce 500 thousand cars with 12 thousand employees per year in the factory it opened in Berlin. While it is calculated that Tesla produced the Model 3 in 10 hours, it is estimated that it takes 30 hours to produce the electric ID.3 model in Volkswagen.
The German automotive sector accounts for 5 percent of the total value added. 3 percent of employment in the country is provided by the automotive sector.
On the other hand, according to the study of the Economics Research Institute (Ifo), headquartered in Munich, it will cost the country dearly for the German automotive industry to abandon internal combustion engines and switch to electric car production. According to Ifo, this is expected to leave about 100,000 people unemployed.