European automakers outsource production to eastern Europe and China Denis… — Volkswagen 166

21 Апр 2015 | Author: | Комментарии к записи European automakers outsource production to eastern Europe and China Denis… — Volkswagen 166 отключены
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European automakers outsource to eastern Europe and China Krassnin and Dietmar Henning

9 2014 WSWS

The European industry is systematically utilising low in eastern Europe to slash across the entire continent. are increasing the tempo of outsourcing to Europe and China, eliminating in western Europe, and using to drive down wages and poor working conditions.

approximately one fifth of Europe’s are produced in eastern Europe. to the consultancy firm Roland 15 auto concerns operate 12 there with a total capacity of 3 million vehicles. tendency is rising sharply. The of vehicles produced in Romania by 21 percent to 400,000, the fastest of any country globally.

The auto are building entire factories in Slovakia, Hungary, and increasingly Volkswagen (VW) mainly in Poland for exports, and in Russia for the market. Since 2011, VW has out the labour-intensive process of assembling all below the Golf class of Germany.

In line with VW subsidiary Skoda is expanding its in Kvasiny, Czech Republic, for a new likely to be a larger SUV. will also build a for VW’s Spanish brand according to VW CEO Martin Winterkorn. Spanish plant lost the competition within the company for the contract.

The successor model to the VW Transporters will be manufactured in Poland. it was announced that the cooperation Mercedes and VW to manufacture both the Sprinter and Crafter would end in the IG Metall trade union had that thereafter the Transporter could be manufactured at VW’s plant. However, management the contract to Poland. A new plant is to be for this in Wrzesnia, near providing 2,300 jobs.

which is owned by VW, has also expanded production in eastern With more than employees and almost 2 million manufactured last year, Hungaria includes the world’s engine factory. Audi’s division produces the full of VW vehicles. In addition, the Györ in Hungary manufactures the Audi A3 and from start to finish, any collaboration with factories in In Györ, 125,000 vehicles soon be rolling off the production annually.


General Motors’ Opel produced 600,000 in its Hungarian plant at Szentgotthárd year, and is planning an investment of €500 million to increase to 750,000 units. While its plant will close year with the loss of jobs, the Gliwice plant in is to be expanded to take over the of the Astra model from in Germany.

Daimler is encouraging its plants in Romania and Hungary to work in production.” In the process, production is outsourced from German step by step to countries much lower wages.

the beginning of 2012, the Mercedes B series and the mid-range Coupé CLA been manufactured entirely in the plant at Kesckemét by 3,000 The plant completes with the in Rastatt, Germany. Daimler of human resources Wilfried stated, “From a financial of view, a combined calculation of the plant at Rastatt in Germany and the in Hungary plays an important

The company also decided a ago to expand its gearbox production in Romania. The Untertürkheim plant Stuttgart lost out in internal to the Romanian plant to produce gearboxes.

Since 2011, Europe has not only manufactured in Cologne, but also at the Romanian of Craiova. Both locations are competing over the Fiesta which has been produced in since 1979. If the Cologne do not accede to pressure from and IG Metall to accept deteriorating conditions, production of the Fiesta be awarded to the Romanian plant 2017. Ford has already down three plants in and Britain.

Asian and French Hyundai-Kia, Toyota, and Suzuki, as as Peugeot-Citroen, are also represented in Europe.

Auto manufacturers are being to eastern Europe by the limited and low wages of eastern European Audi CEO Rupert Stadler “An hour of labour in costs €13, in Germany, on the activity, between €40 and In Bulgaria and Romania, they are at less than €5, and in they are just as low.

It is a pattern with China. In to low wages, there is also a sales market. The Centre for Research (CAR) at Essen wrote at the beginning of the year, auto year 2014 be the beginning of a new era.” For the first in history, more vehicles be sold in China at 15.87 than in the United States 15.7 million.

If utility are included, China has been the producer and sales market for years. In 2013, for example, VW accounted for almost one in three bought in China, 3.3 million Among the main brands, VW for almost every second The German company now obtains half of its total profit production and sales in China. VW total profits of €9.1 (after taxes and interest), €8.7 billion and BMW €5.3

The auto producers have working for years to increase production capacity in China. VW five new plants last and another two are to follow this The company intends to invest billion in China over the five years. This is the largest in the history of the Chinese industry.

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All other auto manufacturers are to China. Peugeot-Citroen, which has a loss-making company for years and received a capital injection the French state and Chinese producer Dongfeng, intends to production and sales in Asia in the years.

Around 60 percent of the produced in China belong to automakers. The production of Chinese has declined slightly, and their of total production has shrunk.

Chinese president Xi Jinping to Germany two weeks ago, VW and announced additional multibillion in China. In the presence of German Angela Merkel and President Xi in Daimler signed an agreement its Chinese partner Beijing (BAIC) to expand production of and engines in a joint company, Benz (BBAC), in Beijing. sides are investing €1 in total. Daimler chief Zetsche stated that the growth of the Chinese auto “we want to be part of it the expansion of production in close to the market.”

Daimler joined up BAIC in November 2013 an investment of €625 million. The of the Mercedes is the first foreign to own a significant percentage, 12 percent, of a Chinese auto company. In joint venture in Beijing, the E and C will be built, as well as a rover GLK. Additional are to follow. Next year, is to be more than doubled to vehicles.

Daimler is also the first company to issue company in China. As the company reported in in mid-March, the bonds were in the sum of €60 million and would run for one Daimler finance director Ueber said that the “met with significant from Chinese investors.”

to estimates from the credit agency Standard Poor’s, the market in China could to €13.8 trillion this thereby surpassing the US market.

pressure, auto suppliers are the same production outsourcing. A by accountants PricewaterhouseCoopers suggests in the future, 80 percent of demand German producers for additional will come from

Bosch has built a new plant for systems in the western Chinese of Chengdu, and plans to invest a €100 million there. By Bosch intends to shift the of starters and alternators from in Germany to a Hungarian plant at While the international auto supplier Johnson Controls is closing plants or reducing in Germany, a new plant located door to Daimler’s facility in Hungary, has been in place for two Johnson Controls is planning 11 new in China, bringing its total to 68 in all in the direct vicinity of the international plants.

With the exploitation of cheap in eastern Europe and China, the concerns are striving for profit of 10 percent. The financial director of parts supplier Magna, Galifi, stated, “We rising operating returns the east we move.”

According to the Auto Producers’ Association 3 million people in Europe are employed by automakers, and almost 13 in the sector as a whole, including the industry. Their incomes and are increasingly under threat if continue to be played off against counterparts in eastern Europe and

Volkswagen 166
Volkswagen 166

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