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I think German car industry is like the banks "too big to fail". The EU taxpayers will come to their resque. Like today we have to supply Germany with electricity because of their stupid decisions to close their nuclear power. Electricity prices all over Europe are sky high thank,'s to Germany importing electricity from other EU countries, and people in exporting countries are totally mad about this.
@@eng3d That's what unions basically are. With layoffs, the union would lose members, thus lose membership fees (= income) and influence (= power). On the other hand, since the membership fees of the union involved here (IG Metall) are dependent on their members' salaries, pay rises would mean more profits for the union.
@@eng3d Agree as all their jobs are likely for the chop due to automation/AI/Robots and an extremely bad balance sheet to boot, so take what you can prior to being laid off. And more like assisting in digging their own graves.
I worked in the car industry 15 years ago and was part of a toxic union. Only a small minority voted for more money and the rest of us were bullied to comply. We all eventually lost our jobs....this is exactly what's happening here.
Nissan ireland....we distributed and prepared cars for sale on a huge ex car assembly plant on the kylemore road....greed got us all laid off.....the union bosses left with a huge lump sum.
Yep, lost the Chinese market, losing the Western markets. Pockets of VW are okay, but the whole thing has to slim down or there will be a catastrophic implosion.
True, so is GM, Stellantis and many more. The car market has shrunk from 80 M cars per years to 70M cars. Some brands has lost a ton of sales while others are just starting to feel the pressure.
@@keyzervega They have some of the highest dividens in the world, all well in the double digits. Should have spent that one on efficiency and research.
THANK YOU for this video ! Stellantis / CDJR settled a USA strike a year or two ago with HEFTY pay increases, and 40 hours of pay for only 32 hours of work. And they wonder why nobody is buying the "HUNDRED GRAND WAGONEER" which shifts the gearbox into reverse at random times for no reason. And now the UAW has a foothold at that Volkswagen plant in Tennessee.
Interesting how those car makers who's workforces are unionized are in major trouble both in Germany and the USA. It was also strong unions that put the final nail in the coffin of the British auto industry in the 1970's. The real irony is that the most profitable auto maker in both Germany and the USA is not unionized, has fort against unions both from management and the workforce and that is Tesla. Just maybe there is a lesson here.
Unions have nothing to do with Tesla's success. It was the EV revolution he jumped on first plus government subsidies and California subsidies, liberal buyers and California high tech brains.
Perhaps the main lesson is make what the public want. If you deep dive into Tesla's profit, though, they don't make much on Auto's. They are by far one of the most innovative companies in history and deserve success. However, Tesla's cash cow is large scale batteries where there is much need and large profits.
@@erik.... No, Tesla pays better than the UAW, but also has far less workers doing a much harder job. Stock is not evaluated when pay is compared. If it was, every Tesla employee makes far more than what UAW are paid.
The German union refused to take a pay cut when VW management told them they wouldn’t cancel hefty executive pay increases or cut dividend payments on shares. The Porsche family refused to stop taking €50 million in dividends on their shares, but demanded workers take a 10% pay cut. That’s why the union wouldn’t agree to a pay cut.
@@grahamcampbell8297 Well I don't blame the German for striking. We Brits have a saying, 'what's good for the goose, is good for the gander'. In other words, both sides need to feel the pain, espcially the management and Porsche family who have led the VW Group so poorly. Even if Herbert Diess came back, I doubt if he could not sort out this mess.
@TGWazoo1 They are a reality. But then again you don't live in objective reality so everything is a meme to you. Ask Boeing how that buyback of $70 billion is working out for them. They could have built 3 new clean sheet aircraft for that amount including a 737 successor but seems like they had other priorities. Boeing CEO admitted that a brand new plane is a moonshot. An aircraft manufacturer considers building a new aircraft, their literal job, a tough ask.
That's exactly my opinion, too. At the beginning of the video, I thought you were defending the Unions. It is true that labor rights have been dismissed. However, in the automotive industry, robotization and automation have been delivering better efficiency and returns to the corporations that early started to do it. China and Tesla are good examples. Legacy corporations now have a humanitarian problem at hand.
If the Union members in the US or the EU do not realize that VW is in very serious trouble, perhaps VW should let them go on strike. VW has too many vehicles sitting in storage lots anyway. Why not save all that paycheck money? VW may be in trouble, but they can certainly last longer than the workers who likely live paycheck to paycheck. They can sell the cars in the lots until the workers come to their senses and agree to more reasonable demands.
All are former divisions of GM. Holden, Vauxhall and Opel. How long before GM itself will be history now that its China cash cow is no longer supporting the companies bottom line ?.
As an automation engineer, one of the bigger reasons for using a robot is quality. A robot can place a component with accuracy of about a sheet of paper. Humans can’t do that. I like Vw to drive. Never own one due to reliability problems.
100% import tariffs are super effective! They make the workers arrogant and demand for unreasonable pay rises. Car prices will go up and be forever uncompetitive.
with high labor and energy costs, it looks like VW AG will be a become a design and testing company and have all their products manufactured outside Germany. VW already uses Mexico for the North American market. Most VW owners in America would prefer German-made ICE cars- not ones made in Mexico due to reliability, but it just doesn't look possible.
When I worked at Amazon, one of my co-workers had worked for the union supplier that made frames for the Ford Explorer SUV. They went on strike over a tiny increase in health insurance costs. That supplier built a non-union plant in Tennessee and refused to hire any of the old union members. Ford immediately started buying all their Explorer frames from the new Tennessee plant. In the short run, unions can get their members more money. In the long run, either management will respond, or high-priced products will put whole companies out of business.
Yes. You have income and you have expenses. The difference between the two is profit. In the expenses is not the entirety of the debut but the SERVICING of it. The trouble is the servicing is going up...
They are paying the interest on it, they are not paying down the principal. Sometimes this makes sense because you have a better place to put the money, like an investment. Sometimes it makes sense because the debt is structured so that paying down the principal faster than agreed results in fines.
Because VW paid all the profit they were making to the share holders as dividends for years. And if they want to spend money for the business, they got loans from banks. That’s the reason of the debt.
@@CengizTheBand the point of investment is to get a return, so they should have been paying dividends to shareholders. The loans have come from the emissions scandals and trying to move to EVs, a pair of disasters.
Oh dear oh dear. It’s playing out exactly as Herbert Diess said it would. I feel sorry for the workers in a way - they are in a bubble and are ignorant of the world market. All this is doing is hastening VW’s inevitable demise and splitting up with brand sales and more factory closures.
There is a bit of difference between a 14% pay rise and being sacked. That being said, I bet the union bosses are still getting their pay packets regularly.
No but robots get no pay. Entire factories are now lights out. So bring back manufacturing but expect no jobs. No One job. A guard dog and a man to feed it.
This is the problem. Manufacturing has slowly died as too easy cheap soft office talking jobs find it easier to overpay. Been going on for a long time but will lead to a western world collapse gradually, like the decline and fall of Rome. When you open up world trade so you can exploit lower pay areas to make fat margins at home, you make inevitable the collapse of your local manufacturing and all commerce eventually, pushing pay down to the world average wage. Rapid tech developments have just slowed the process while the west had the lead but we are losing that now in the new techs. Hence the EVs are basically Chinese.
It is sad that workers have to continually plead for higher wages while corporate officers quietly giving themselves hundreds of millions, and even billions, of dollars in raises. For some reason, it’s always the workers fault when they ask for higher wages, and the companies suffer, and it’s always the workers who get let go first. VW is clearly suffering but, the chief officers need to take massive pay cuts first, before asking the workers to as it’s largely the corporate officers’ fault for the dumb decisions.
Agreed. I say good on the union for not settling for a shitty deal. And I can guarantee that the union has a research department that fact checks the company finances with scrutiny, not relying on the stupid mainstream media reports or 2nd rate UA-camrs pretending to be media.
All those ancillary demands - health care, PTO, etc. - are all things the German workers are already getting because such things are mandated of every employer in Germany. The workers in the US need a higher pay raise because they have to pay for things like that out of their own pocket.
In order to survive they have to cut 20 percent of the personnel and cut the divident and maybe use some government bailout. And improve their quality.
Seems like there is quite a disconnect between VW workers and the management in the US. I thought VW was near extinction. There is no way you can or should stop automation. Workers will have to do something else. I'm a "lefty" but even I have accepted the fact that unions are dinosaurs. Keeping corporations in check must be done by the government and not by unions.
In the US, maybe, but in Europe unions are essential. For example here in Sweden there isn't even a minimum wage, it's all negotiated by the unions. And it's still working.
Manufacturers such as Hyundai/Kia will (continue to) build new factories in the US with much more automated manufacturing. They will build much cheaper cars, putting further pressure on the legacy automakers. As you say, this will not end well.
Sounds reminiscent of British Leyland in the 1970s, making huge losses with products no one wants and militant unions demanding huge pay rises and as everyone knows that didn't end well
Hey Electric Viking, Volkswagens debt comes from their financing department, so its not a big deal as the cars are the insureance for the debt they give for their own products to their own customers. Same goes for Toyot etc, they do their own Vehicle Finances for their own products.
The editing/splicing these topics together is reducing the enjoyment in my viewing experience. I feel like there is a bit of mental whiplash happening with little to no closure of the first subject.
One of your best videos. You are my source for all things electric on EV’s . Do you think the US will eventually get the option of buying Chinese EV’s? (without the Tariffs).
Sam, VW total debt end of September was more at $218Bn as per its finanical report, but as your chart states, "Total Debt On The Balance Sheet". What is not know is the value of 'Off Balance Sheet Lending". I suspect they could be way More indebted.
You must not touch the income of the shareholders... if you reduce their income, they will start selling their shares, which will cause an avalanche reaction and a very quick collapse of VW... Do not touch the one to whom you are attached by infusion and who enables you to survive in a moment like this...
Ten percent a year pay increase? Profit sharing? Only if the company loses money then employees take a pay cut. Union appears to be destroying job security!
Oh dear this company is done. When Nintendo was in similar situation with the WiiU. The CEO took a 50% paycut and he asked his workers for 10%. And promised everyone kept their jobs and that they would get through. They made the switch an big commercial success and it was reversed back to normal. Company was saved.
It's not just the workers and wages straining legacy auto companies, stock buybacks, dividends, and massive executive bonuses not based on performance also drive value out of these companies.
The UAW under Fain has gotten too aggressive. They need to work with the employer or that raise is going to come on the backs of laid off coworkers. It also might scare off companies that potentially want to build a factory in the region. (I wish that wasn’t true.) -they were making some pretty absurd demands last summer. 32 hour work week. 😔
I’ve spent a long time in manufacturing. It’s really difficult to be a union member because those jobs can just go anywhere in the world. Now that global shipping prices are relatively cheap. You can try to tell management how to run the company, but it’s not gonna work very well. The consumer wants the best possible product at the lowest possible price and they don’t care about your job.
@@metrotrujillo don’t get me wrong, I want the best for those workers. But I wouldn’t play management’s hand when your company is in 1:16 a bind. Especially when they’re talking about shutting entire operations down. Going on strike mean the factory gets shut down completely.
@@nateforward9984 But they are ignoring how Investors think. For example, if you have a Billion Dollar, you can put it in the S&P index fund and collect like 10-15% return. Or you can build a Car factory, hire 5000 people, and try to sell cars. If building a Factory and hire a lot of people is more head ache and no profit compare to just shut down the factory and throw your money in Index Fund, or even buy Bonds that pays 5%, no one would build a factory.
@@nateforward9984 VW had the chance to make the move long ago to electrify, they did not, now they are just paying the price, if workers will get screw, so upper management should get the same. Same boat. floats or sink.
The UAW only looks out for it's own interest. They will make al the companies they have a foot hold in go out of business in the next few years. Ask more money for employees at a company that is already struggling, seems like a great plan. Hoepfully all those factory workers have other job skills because they are going to need them soon. If a robot can easily do your job do you really think your underpaid?
I said when the unions in America ask for so much money... All the automakers should automate away all the workers.. they all just agreed and said okay we'll automate as fast as we can. 😂 They deserve it.
An arbitrar should come in and get the sums right. It is ridiculous to negotiate based on false information. And very importantly, governments should have taken a major initiative towards adjusting to abundance as automation turn our world of scarcity to one of abundance. That is the job of government that is long overdue!
I’ve rarely met a stupid union official. What they say and what they believe are often completely different, especially when it comes to job security. The march of legacy automakers to Armageddon is a replay of the Great British motor industry implosion.
Well in the previous video it was disclosed that the top executive level are still earning their millions--- thats where the money would be coming from.
The problem is the unions see the writing on the wall. Within 5 years many manufacturing jobs will become jobs for robots. So they are trying to create a situation where the companies must keep them on the payroll. A situation like that can''t hold very long before the auto maker collapses from competition from outsiders with an automated workforce.
How much have the Porsche family and other executives been paid in dividends in the last few years. 100 of millions of dollars. Not saying they will survive but the the higher ups have bleed this company dry
They're going to pay them. They make enough money people don't understand the company is greedy. They're not sharing with their employees. That's why they're doing this
In 2023 VW paid €4.5 Billion to the shareholders. That sounds like a lot, but they also employ 684,025 people. If you spread that dividend money among the employees instead of the shareholders, they would only get €6,578.71 each. That's for a year. That's not much of a raise, and that's all the surplus profits VW was distributing. That means if the union is asking for more than €6k per year, they're now paying more than they have.
Totally sympathetic to workers and their jobs but the market decides wages and job numbers NOT the workers. If VW cannot control numbers up and down as needed the entire brand might collapse. How can workers expect zero job losses and pay rises when car sales and profits are falling??
I’m not sure if many of these legacy automakers will survive the future. They didn’t see the rise of EVs, they aren’t pivoting well into that new world, and if they fail to that, they will be dead within a decade.
This is a game of Russian roulette. In this game, you can only dodge a bullet for so long before it's all over in a flash. You will not see it coming. The future lies in changing the game, and in doing something different, not doing more of the same and expecting a different result.
You brought up a good Psycology about the Russian Roulette, though. Is a Gambler Mentality, you always bet on winning until you lose it all, is not a very common logic, and every human have this problem to certain extend.
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I would really love to know how much work you did put in to get to this stage
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As a beginner in this, it’s essential for you to have a mentor to keep you accountable.
Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my investment decisions align with market dynamics for optimal returns.
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Lost the plot. Look what happened to the Australian car industry, and the UK car industry. Bye bye VW.
I think German car industry is like the banks "too big to fail". The EU taxpayers will come to their resque. Like today we have to supply Germany with electricity because of their stupid decisions to close their nuclear power. Electricity prices all over Europe are sky high thank,'s to Germany importing electricity from other EU countries, and people in exporting countries are totally mad about this.
Bye bye workers
@ Sad that it’s all coming to this, but blame it all on appalling management decisions over many years.
Spot on.
Herbert Diess had a clue. And then he got canned.
When VW goes belly up everyone will have plenty of time on their hands to argue about who is to blame.
Regulations
They are digging their own Graves .................................
I think it is a syndicate thing. VW is closing factories, so the syndicate would want to profit from the last money.
@@eng3d That's what unions basically are. With layoffs, the union would lose members, thus lose membership fees (= income) and influence (= power).
On the other hand, since the membership fees of the union involved here (IG Metall) are dependent on their members' salaries, pay rises would mean more profits for the union.
@@eng3d Agree as all their jobs are likely for the chop due to automation/AI/Robots and an extremely bad balance sheet to boot, so take what you can prior to being laid off. And more like assisting in digging their own graves.
Yes but they want a pay rise for digging them! Then that is ok. 🤣
They are lucky to still have jobs
Not for very long though.
I worked in the car industry 15 years ago and was part of a toxic union. Only a small minority voted for more money and the rest of us were bullied to comply. We all eventually lost our jobs....this is exactly what's happening here.
Really? What cars? What union?
Pick almost any UK car manufacturer, except maybe Nissan.
Nissan ireland....we distributed and prepared cars for sale on a huge ex car assembly plant on the kylemore road....greed got us all laid off.....the union bosses left with a huge lump sum.
@@aeropro7558
Then these unions need to be regulated.
They're cutting their own throats. I'm pro-labor, but the demand has dissapatèd.
One of the plus reasons for going EV is that the cars require less parts, thus less workers to assemble.
VW has an overcapacity issue😅
OC=low sales= bad cars.
20% fall in car sales in Europe. From 15 mln to 11 mln
Yep, lost the Chinese market, losing the Western markets. Pockets of VW are okay, but the whole thing has to slim down or there will be a catastrophic implosion.
True, so is GM, Stellantis and many more. The car market has shrunk from 80 M cars per years to 70M cars. Some brands has lost a ton of sales while others are just starting to feel the pressure.
@@jgarbo3541or for China the narrative is good quality= large quantities = lower prices = over capacity
Pay them more = even more higher prices of VW cars = less sales = closures = stupidity .
Wages aren’t Volkswagens problem. The fact that they spend four times as many work hours to produce a worse car is.
How much is going to share holders and to level execs
Google BL
@@keyzervega They have some of the highest dividens in the world, all well in the double digits. Should have spent that one on efficiency and research.
@@monobryn64 Both
THANK YOU for this video ! Stellantis / CDJR settled a USA strike a year or two ago with HEFTY pay increases, and 40 hours of pay for only 32 hours of work. And they wonder why nobody is buying the "HUNDRED GRAND WAGONEER" which shifts the gearbox into reverse at random times for no reason. And now the UAW has a foothold at that Volkswagen plant in Tennessee.
Bargaining themselves right out of their jobs. Brilliant!
Reject it at their own peril, I've no sympathy for both of them
Interesting how those car makers who's workforces are unionized are in major trouble both in Germany and the USA. It was also strong unions that put the final nail in the coffin of the British auto industry in the 1970's. The real irony is that the most profitable auto maker in both Germany and the USA is not unionized, has fort against unions both from management and the workforce and that is Tesla. Just maybe there is a lesson here.
Unions have nothing to do with Tesla's success. It was the EV revolution he jumped on first plus government subsidies and California subsidies, liberal buyers and California high tech brains.
Perhaps the main lesson is make what the public want. If you deep dive into Tesla's profit, though, they don't make much on Auto's. They are by far one of the most innovative companies in history and deserve success. However, Tesla's cash cow is large scale batteries where there is much need and large profits.
Are you saying Tesla is paying their workforce less than others?
@@erik....their manufacturing is certainly more automated, meaning fewer workers are needed.
@@erik.... No, Tesla pays better than the UAW, but also has far less workers doing a much harder job. Stock is not evaluated when pay is compared. If it was, every Tesla employee makes far more than what UAW are paid.
I thought VW wanted the workers to take a pay cut, not a pay rise...
When they close their factories (which they will if this goes on), there won’t be any pay to rise/cut.
Yes, in Europe but at the moment, America excluded.
The German union refused to take a pay cut when VW management told them they wouldn’t cancel hefty executive pay increases or cut dividend payments on shares. The Porsche family refused to stop taking €50 million in dividends on their shares, but demanded workers take a 10% pay cut. That’s why the union wouldn’t agree to a pay cut.
@@grahamcampbell8297 Well I don't blame the German for striking. We Brits have a saying, 'what's good for the goose, is good for the gander'. In other words, both sides need to feel the pain, espcially the management and Porsche family who have led the VW Group so poorly. Even if Herbert Diess came back, I doubt if he could not sort out this mess.
@@grahamcampbell8297 Why would they stop taking dividends? VW needs their money, it doesn't need all the workers.
OK, how about if we just go bankrupt, would that make you happy?
The chief officers need to take massive pay cuts first.
Volkswagen is profitable, so a bankruptcy isn’t really imminent.
Maybe VW shouldn't have done share buybacks worth 10s of billions and invested in its future cars.
“Buy backs” are a meme.
@TGWazoo1 They are a reality. But then again you don't live in objective reality so everything is a meme to you.
Ask Boeing how that buyback of $70 billion is working out for them. They could have built 3 new clean sheet aircraft for that amount including a 737 successor but seems like they had other priorities.
Boeing CEO admitted that a brand new plane is a moonshot. An aircraft manufacturer considers building a new aircraft, their literal job, a tough ask.
That's exactly my opinion, too. At the beginning of the video, I thought you were defending the Unions. It is true that labor rights have been dismissed.
However, in the automotive industry, robotization and automation have been delivering better efficiency and returns to the corporations that early started to do it.
China and Tesla are good examples. Legacy corporations now have a humanitarian problem at hand.
And water turbines to make. And other electricity generating devises. To propel their electric cars!
If the Union members in the US or the EU do not realize that VW is in very serious trouble, perhaps VW should let them go on strike. VW has too many vehicles sitting in storage lots anyway. Why not save all that paycheck money? VW may be in trouble, but they can certainly last longer than the workers who likely live paycheck to paycheck. They can sell the cars in the lots until the workers come to their senses and agree to more reasonable demands.
Who would buy a car from a company that is on hold? The 8 year battery warranty is in risk of being useless.
One word “Holden”
Dead as hell
Yep. Gone and buried.
We call it "opel"
We call it Vauxhall
All are former divisions of GM. Holden, Vauxhall and Opel. How long before GM itself will be history now that its China cash cow is no longer supporting the companies bottom line ?.
They deserve to go bust, everyone is greedy and that doesn't work. Unions will destroy the motor industry.
There is more than enough debt to terminate the entire VW labor force. Why does nobody realise that?
When VW goes bankrupt, they have no more debt to pay back.
Because german state us the biggest shareholder.
As an automation engineer, one of the bigger reasons for using a robot is quality. A robot can place a component with accuracy of about a sheet of paper. Humans can’t do that. I like Vw to drive. Never own one due to reliability problems.
100% import tariffs are super effective! They make the workers arrogant and demand for unreasonable pay rises. Car prices will go up and be forever uncompetitive.
Ok, no raise… and you’re fired.
with high labor and energy costs, it looks like VW AG will be a become a design and testing company and have all their products manufactured outside Germany. VW already uses Mexico for the North American market. Most VW owners in America would prefer German-made ICE cars- not ones made in Mexico due to reliability, but it just doesn't look possible.
When I worked at Amazon, one of my co-workers had worked for the union supplier that made frames for the Ford Explorer SUV. They went on strike over a tiny increase in health insurance costs. That supplier built a non-union plant in Tennessee and refused to hire any of the old union members. Ford immediately started buying all their Explorer frames from the new Tennessee plant. In the short run, unions can get their members more money. In the long run, either management will respond, or high-priced products will put whole companies out of business.
I don’t understand how any profit exists when there’s $190 billion in debt on their books. Could someone explain this to me?
Toyota has the same debt too
Yes. You have income and you have expenses. The difference between the two is profit. In the expenses is not the entirety of the debut but the SERVICING of it. The trouble is the servicing is going up...
They are paying the interest on it, they are not paying down the principal. Sometimes this makes sense because you have a better place to put the money, like an investment. Sometimes it makes sense because the debt is structured so that paying down the principal faster than agreed results in fines.
Because VW paid all the profit they were making to the share holders as dividends for years. And if they want to spend money for the business, they got loans from banks. That’s the reason of the debt.
@@CengizTheBand the point of investment is to get a return, so they should have been paying dividends to shareholders. The loans have come from the emissions scandals and trying to move to EVs, a pair of disasters.
Oh dear oh dear. It’s playing out exactly as Herbert Diess said it would. I feel sorry for the workers in a way - they are in a bubble and are ignorant of the world market. All this is doing is hastening VW’s inevitable demise and splitting up with brand sales and more factory closures.
The Union would like the same pay rises as has been had by the VW board.
D U M B
In times of no sales demanding a pay rise 😅
This is called privilege and not necessity.
There is a bit of difference between a 14% pay rise and being sacked. That being said, I bet the union bosses are still getting their pay packets regularly.
when there's no money, there's no money..... salary is part of profit share
Salary is an expense.
bring back manufacturing? cut the crabpp.. anyone in the U S willing to be paid $ 8 an hour to do hard labor job?
No but robots get no pay. Entire factories are now lights out. So bring back manufacturing but expect no jobs. No One job. A guard dog and a man to feed it.
This is the problem. Manufacturing has slowly died as too easy cheap soft office talking jobs find it easier to overpay. Been going on for a long time but will lead to a western world collapse gradually, like the decline and fall of Rome. When you open up world trade so you can exploit lower pay areas to make fat margins at home, you make inevitable the collapse of your local manufacturing and all commerce eventually, pushing pay down to the world average wage. Rapid tech developments have just slowed the process while the west had the lead but we are losing that now in the new techs. Hence the EVs are basically Chinese.
Management/owners have mismanaged their product portfolio and continue to rake in the cash.
It is sad that workers have to continually plead for higher wages while corporate officers quietly giving themselves hundreds of millions, and even billions, of dollars in raises. For some reason, it’s always the workers fault when they ask for higher wages, and the companies suffer, and it’s always the workers who get let go first. VW is clearly suffering but, the chief officers need to take massive pay cuts first, before asking the workers to as it’s largely the corporate officers’ fault for the dumb decisions.
Trickle down doesn't work?
zero salary zero bonus
Agreed. I say good on the union for not settling for a shitty deal. And I can guarantee that the union has a research department that fact checks the company finances with scrutiny, not relying on the stupid mainstream media reports or 2nd rate UA-camrs pretending to be media.
Even sader if company they work for closes down...and they have nothing
@@OMAR-vu4hwno profit, no company, it's that simple.
All those ancillary demands - health care, PTO, etc. - are all things the German workers are already getting because such things are mandated of every employer in Germany. The workers in the US need a higher pay raise because they have to pay for things like that out of their own pocket.
Goodbye Volkswagen, it was fun knowing ya!
They must be being paid off by VW rivals. Crazy!
In order to survive they have to cut 20 percent of the personnel and cut the divident and maybe use some government bailout. And improve their quality.
There *are* "labor friendly" economists... Maybe you should get one on the Show... Dean Baker, Michael Hudson, Richard Wolff, etc..
The German government will side with the corporations, not doing tariffs to protect the German corporations factories in China, i.e. Chinese jobs.
Seems like there is quite a disconnect between VW workers and the management in the US. I thought VW was near extinction. There is no way you can or should stop automation. Workers will have to do something else. I'm a "lefty" but even I have accepted the fact that unions are dinosaurs. Keeping corporations in check must be done by the government and not by unions.
In the US, maybe, but in Europe unions are essential. For example here in Sweden there isn't even a minimum wage, it's all negotiated by the unions. And it's still working.
Manufacturers such as Hyundai/Kia will (continue to) build new factories in the US with much more automated manufacturing. They will build much cheaper cars, putting further pressure on the legacy automakers. As you say, this will not end well.
The country doesn't want cheap energy, and the union want pay raise.
But still complain how everything is so expensive
Meanwhile, bots are getting much influx of money to perfect the replacement process.
R.I.P. VW
Sounds reminiscent of British Leyland in the 1970s, making huge losses with products no one wants and militant unions demanding huge pay rises and as everyone knows that didn't end well
Hey Electric Viking,
Volkswagens debt comes from their financing department, so its not a big deal as the cars are the insureance for the debt they give for their own products to their own customers.
Same goes for Toyot etc, they do their own Vehicle Finances for their own products.
What portion of their debt is due to financing vehicles vs just borrowing money to do things like build factories or upgrade equipment?
@ 280 Billion Euro is the Debt carried by their financing sector
86 Billion Euro is the Long Term debt that VW carries
UAW should demand 5,000% pay raise. Every worker should make as much as a Tesla employee.
The editing/splicing these topics together is reducing the enjoyment in my viewing experience. I feel like there is a bit of mental whiplash happening with little to no closure of the first subject.
One of your best videos. You are my source for all things electric on EV’s . Do you think the US will eventually get the option of buying Chinese EV’s? (without the Tariffs).
I am reminded of Elon Musk on unions, that they tend drive a wedge between workers and the companies. Go Tesla
Sam, VW total debt end of September was more at $218Bn as per its finanical report, but as your chart states, "Total Debt On The Balance Sheet". What is not know is the value of 'Off Balance Sheet Lending". I suspect they could be way More indebted.
The VW cars are just a joke compared to the competition……
GIVE THEM AN 80% PAY INCREASE.... what could possibly go wrong
Go for it. The high level managers are getting lots of money. The shareholders are getting lots
You must not touch the income of the shareholders... if you reduce their income, they will start selling their shares, which will cause an avalanche reaction and a very quick collapse of VW... Do not touch the one to whom you are attached by infusion and who enables you to survive in a moment like this...
I hardly ever see Volkswagen products on the street. They could be costing their on jobs before it’s over with.🤔
Ten percent a year pay increase? Profit sharing? Only if the company loses money then employees take a pay cut. Union appears to be destroying job security!
The unions work to oppose the company's progress
There is no hope
Moving on
The companies work to oppose a living wage for union workers.
Robots don’t demand a raise and they don’t go on strikes. 😂
Oh dear this company is done.
When Nintendo was in similar situation with the WiiU. The CEO took a 50% paycut and he asked his workers for 10%. And promised everyone kept their jobs and that they would get through.
They made the switch an big commercial success and it was reversed back to normal. Company was saved.
Union is not pay benefit plan nor retirement bank account.
Upper management needs that extra money for holiday bonuses
People are tapped out!
It's not just the workers and wages straining legacy auto companies, stock buybacks, dividends, and massive executive bonuses not based on performance also drive value out of these companies.
If you are on a sinking ship you shouldn't be doing a rain dance. Good luck VW workers.
Why are they even offering 14% wage rise when the company is going down the toilet?
Bye bye workers , come in Tesla robots your hired !
VW just closed another factory in China too.
The issue of most companies using technology to replace humans comes down to greed.
What happens to all these persons that have to be fed?
Get what you can now, your going to need it later on.
I expect the smarter ones to already have a nice villa in Southern Europe to retire to.
Did they squeal when the USA squeezed $21b out of them?
They need a 14% pay rise in order to afford switching from VW ICE cars to VW EVs. If they don’t get it they will have to buy Chinese.
The UAW under Fain has gotten too aggressive. They need to work with the employer or that raise is going to come on the backs of laid off coworkers. It also might scare off companies that potentially want to build a factory in the region. (I wish that wasn’t true.)
-they were making some pretty absurd demands last summer.
32 hour work week. 😔
they have to be agressive, otherwise your generation will continue to live with their parents,
I’ve spent a long time in manufacturing. It’s really difficult to be a union member because those jobs can just go anywhere in the world. Now that global shipping prices are relatively cheap. You can try to tell management how to run the company, but it’s not gonna work very well. The consumer wants the best possible product at the lowest possible price and they don’t care about your job.
@@metrotrujillo don’t get me wrong, I want the best for those workers. But I wouldn’t play management’s hand when your company is in 1:16 a bind. Especially when they’re talking about shutting entire operations down. Going on strike mean the factory gets shut down completely.
@@nateforward9984 But they are ignoring how Investors think. For example, if you have a Billion Dollar, you can put it in the S&P index fund and collect like 10-15% return.
Or you can build a Car factory, hire 5000 people, and try to sell cars.
If building a Factory and hire a lot of people is more head ache and no profit compare to just shut down the factory and throw your money in Index Fund, or even buy Bonds that pays 5%, no one would build a factory.
@@nateforward9984 VW had the chance to make the move long ago to electrify, they did not, now they are just paying the price, if workers will get screw, so upper management should get the same. Same boat. floats or sink.
Old news. They are not closing factories.
Vikings don’t get sunburned in the middle of the winter!
Australian summer. ☀️ 🇦🇺
Yeah, let’s go with some profit-sharing since they’re in the hole for billions
The UAW only looks out for it's own interest. They will make al the companies they have a foot hold in go out of business in the next few years. Ask more money for employees at a company that is already struggling, seems like a great plan. Hoepfully all those factory workers have other job skills because they are going to need them soon. If a robot can easily do your job do you really think your underpaid?
I said when the unions in America ask for so much money... All the automakers should automate away all the workers.. they all just agreed and said okay we'll automate as fast as we can. 😂 They deserve it.
An arbitrar should come in and get the sums right. It is ridiculous to negotiate based on false information.
And very importantly, governments should have taken a major initiative towards adjusting to abundance as automation turn our world of scarcity to one of abundance. That is the job of government that is long overdue!
I’ve rarely met a stupid union official. What they say and what they believe are often completely different, especially when it comes to job security. The march of legacy automakers to Armageddon is a replay of the Great British motor industry implosion.
With the world changing so quickly and the sun setting on ice‘s the unions will kill the goose that lays the golden eggs.
Well in the previous video it was disclosed that the top executive level are still earning their millions--- thats where the money would be coming from.
3.5% a year thhat's not a big payrise.
14% is bad? Allright...
The problem is the unions see the writing on the wall. Within 5 years many manufacturing jobs will become jobs for robots. So they are trying to create a situation where the companies must keep them on the payroll. A situation like that can''t hold very long before the auto maker collapses from competition from outsiders with an automated workforce.
Profit sharing will not cost VW anything 😂
These unions have forgotten there is a new kid on the block --CHINESE vehicle manufacturers.
They will all go home very soon!!!
Have the top execs in VW Germany offered to take similar pay cuts to the demands made on the German workers? Just curious.
I think in the near future more and more automakers would join Stellantis like conglomerates.
they are done. they will ship production overseas. at least in the US they can just go to Mexico and get minimum tariffs and have cheaper labor.
How much have the Porsche family and other executives been paid in dividends in the last few years. 100 of millions of dollars. Not saying they will survive but the the higher ups have bleed this company dry
They're going to pay them. They make enough money people don't understand the company is greedy. They're not sharing with their employees. That's why they're doing this
In 2023 VW paid €4.5 Billion to the shareholders. That sounds like a lot, but they also employ 684,025 people. If you spread that dividend money among the employees instead of the shareholders, they would only get €6,578.71 each. That's for a year. That's not much of a raise, and that's all the surplus profits VW was distributing. That means if the union is asking for more than €6k per year, they're now paying more than they have.
Industries owned by the worker thrive
14% over 4 years isn’t even keeping up with inflation in America.
Are there still strikes in germany at the moment?
Totally sympathetic to workers and their jobs but the market decides wages and job numbers NOT the workers. If VW cannot control numbers up and down as needed the entire brand might collapse. How can workers expect zero job losses and pay rises when car sales and profits are falling??
I’m not sure if many of these legacy automakers will survive the future. They didn’t see the rise of EVs, they aren’t pivoting well into that new world, and if they fail to that, they will be dead within a decade.
VW invested heavily in EVs and they are very slow sellers. There is the issue.
@ not really. Tesla is doing just fine selling EVs.
This is a game of Russian roulette. In this game, you can only dodge a bullet for so long before it's all over in a flash. You will not see it coming. The future lies in changing the game, and in doing something different, not doing more of the same and expecting a different result.
You brought up a good Psycology about the Russian Roulette, though. Is a Gambler Mentality, you always bet on winning until you lose it all, is not a very common logic, and every human have this problem to certain extend.
Kodak! Nokia! Blockbuster!
@@steak5599 We agree. Like all gambling, the real losers are the families and society.
@@larryc1616 I would add to that list the once unique and strong Australian car industry.
Maybe they should stop paying billions of dividends first, before asking workers to accept pay cuts
No investors no company. Simple economics.