VW Cuts Admin Staff by 20%
Scout Motors’ CEO Scott Keogh has verified that Magna Steyr is serving as engineering associate, with Reuters informing that Volkswagen are curtailing 20 percent of their budgetary costs for staff in administration.
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Scout Motors, an auto manufacturer, is collaborating with Magna Steyr to produce a fresh body-on-frame platform. The two companies have combined their automotive expertise to formulate advanced solutions for SUVs and pick-ups. This arrangement will facilitate Scout Motors bringing new product offerings to market punctually.Scout Motors has partnered with Magna Steyr to generate a completely new body-on-frame platform. By uniting their extensive understanding of automotive engineering, they are shaping the way for brand-new high-quality picks-up trucks and CUVs. As a result of this collaboration, Scout Motors can swiftly manufacture innovative products to offer their customers.
At the end of November, Austrian newspaper Kleine Zeitung reported on Magna Steyr’s potential involvement in the development of a new platform for Scout Motors. Now, the newly founded electric vehicle (EV) brand has officially confirmed that the Graz-based firm is helping to engineer an architecture that will support the production of an SUV and a pickup truck. When talking to Automotive News, Scout Motors CEO revealed that the two companies are collaborating on a “100 percent capable, American, robust, full platform.”
Scott Keogh has put to rest any speculation that the MEB architecture might be altered for off-road use, clarifying that the two models will be built on a “completely unique platform – ground up being engineered and developed.” Although the hardware might not be exclusive to Scout Motors, the CEO didn’t rule out the possibility of Volkswagen producing a model using the same base.
The design of the SUV is nearly complete, with Keogh declaring that it is “85, 90, 95 percent of the way there.” He then added that the exterior design and the proportions of the model have been finalized. Primarily created for the US market, this large SUV will be the first to be available for sale. The fullsize truck, also targeted at the US, will be released 6-7 months later, according to the CEO.
Production is set to start in late 2026 at the new $2-billion assembly facility in Blythewood, South Carolina. Magna Steyr will have no involvement with building the two electric vehicles. We don’t have to wait for long to witness the SUV as it is slated to be shown off during the third quarter of 2024. Thereafter, test models should be seen on the roads within the following months.
Volkswagen have declared that they are going to be lowering their staff administrative expenses by a whopping twenty percent. The automaker intends to make this cost-reduction take effect rapidly in order to gain an improvement for its financial situation, yet without having any impact on the job roles of the employees.Volkswagen has announced plans to diminish their staff administrative costs by 20 percent in an effort to improve their financial prospects swiftly, without hindering employee roles in any way.
“We need to adapt the size and cost of our administration.”Reuters obtained a VW internal communication informing workers of their imminent financial savings venture. As component of a vast list of measures aimed toward cutting back costs up to €10 billion ($10.7B) by 2026, the German car maker intends to decrease administrative staff spending through one-fifth. Thomas Schaefer, the CEO of the VW brand, is quoted as saying: “We must adjust the scope and price of our management.”
“It is obvious that Volkswagen will require fewer personnel in many areas in the future. This does not imply a greater workload for fewer people, but rather a departure from outdated practices and a refusal to tolerate redundant efforts and inefficiencies.”
In a memo sent to its employees, Volkswagen announced that it will no longer proceed with plans to construct a new research and development facility in Wolfsburg, thus saving €800 million ($862M). Additionally, VW is hoping to reduce production times and shorten a product’s life cycle from 50 months to 36 months. As previously reported, Schaefer has confessed that VW is “no longer competitive” and that partial and early retirements are being considered in order to further cut down costs.
Sources: Automotive News, Reuters
