Volkswagen crisis hits Switzerland: suppliers were the first to feel the problems: EADaily

Thousands of jobs in Germany are at risk due to the planned closure of Volkswagen plants, and the crisis has also affected suppliers in Switzerland. This was reported by the Swiss newspaper 20 Minuten News.

The German car industry is in crisis, Volkswagen plans to close its factories, and suppliers are the first to feel the consequences. There are 578 companies in Switzerland that produce and develop parts, materials, tools, machines and services for the automotive industry, Sonntags Zeitung reports. They have an annual turnover of CHF 13 billion from services provided in Switzerland and employ 32,000 people, according to the latest business survey by Swiss Car (Swiss Center for Automotive Research at the University of Zurich).

According to Swiss Car, German manufacturers such as Mercedes-Benz, VW, Audi and BMW are a priority – more than half of all companies surveyed supply results for them.

Over the first nine months of this year, exports have already decreased by 7.8%, and in the third quarter an annual decline of 14.8% was recorded, reports Sonntags Blick.

“This is a big number. Therefore, many companies have imposed a hiring freeze, and there are also selective layoffs and part-time work,” – says the president of the Swissmem business association and former CEO of the auto supplier Autoneum Martin Hirzel.

“Volkswagen’s problems reflect the situation in the European car industry. The situation is critical, but it also opens up new opportunities,” says professor of mobility management and digital innovation at the University of Zurich and head of Swiss Car Anna Schulze.

In the past, Swiss suppliers have been able to adapt to changing conditions, she noted, adding that “these are difficult times for the industry and no one can say how this will turn.”

“And while Volkswagen with one hand is saving on workers in Bavaria and removing unpopular work for citizens, with the other hand it is pumping hundreds of thousands of euros into moving his managers to China, including renting housing, flights and educating children. Crown: € 20 thousand / month. to rent Beijing apartments for the chairman of VW-China. And the burghers… and the burghers are happy to stay,” – referring to the telegram channel “Chancellor Daddy” on the picture of the day.