Prof. Dr. Hartmut Feucht’s Post

Volkswagen is considering plant closures and has ended its job protection pledge. These significant changes mark a pivotal moment for the automaker as they navigate economic and technological challenges. Stay informed on how this could reshape the automotive landscape here: https://ow.ly/gxLs50Thgls

https://lnkd.in/eeAw4XxS Tough times... Jim Farley is taking the heat. When Jim came to Ford he brought fresh insights to marketing he learned while working for Toyota. Great stuff that helped shape customer perception. Fast forward to today and the issue quality, the associated warranty costs and, the HIT that the brand is taking add up to Billions. It's not all Jim's fault! Corporate hiring policies and management efforts to hire the best educated engineers, completely ignoring proven talent that might not have a degree, has led Ford to this place. Additionally age discrimination which is generalized in our society not necessarily a Ford thing, has led many companies to ignore talent "North" of 60. There was a time when your ability determined if you carried a business card that said engineer. I remember as a Tier 1 supplier solving problems on the plant floor (Aerostar) in St Louis simply by talking through the issue with the operators and "suggesting" a path of least resistance to assemble their parts. Problem solving is a skill that requires education yet it must be acknowledged that certain people have a natural instinct to question, innovate and, solve problems. That type of instinct knows no age... What ever y'all been doing ain't working!

Volkswagen is considering plant closures and has ended its job protection pledge. These significant changes mark a pivotal moment for the automaker as they navigate economic and technological challenges. Stay informed on how this could reshape the automotive landscape here: https://ow.ly/4Scp50TgQTE

Volkswagen is in trouble! Volkswagen, once a symbol of automotive dominance, is facing serious challenges that were unthinkable just a few years ago. The company is under immense pressure due to rising costs, the global shift to electric vehicles, and increasing competition—especially from Chinese automakers quickly gaining market share in Europe. The situation has become so dire that Volkswagen is now considering closing factories in Germany for the first time in its history. Chinese companies have made significant advances in EV technology and can offer cheaper alternatives, which has eroded Volkswagen's competitive edge. This, combined with the need for a massive financial overhaul and restructuring, signals that the company is in troubled waters. While Volkswagen is betting on its electric future, the path forward is filled with uncertainty and challenges. https://lnkd.in/dPs8PBf4

87 years coming to an end for VW? Volkswagen is considering closing factories in Germany for the first time in its 87-year history as the carmaker battles to cut costs and survive the transition to electric cars.Union bosses bemoaned a “black day” as they accused the company’s board of escalating its “austerity programme”. The company, founded in 1937, said today that it can no longer rule out unprecedented plant closures in Germany as it seeks ways to save several billion euros. The carmaker considers one large vehicle plant and one component factory in Germany to be obsolete, its works council said, vowing “fierce resistance” to the executive board’s plans. On what may be interpreted as bad news for Germany , VW's chief executive Oliver Blume reportedly said: “The economic environment has become even tougher and new players are pushing into Europe.  “Germany as a business location is falling further behind in terms of competitiveness.” Ouch! Not good at all. The Volkswagen brand, which fuels most of the carmaker’s sales, is the first of the group’s marques to undergo a cost-cutting drive targeting €10bn (£8.4bn) in savings by 2026 as it attempts to streamline spending. Volkswagen said that it also felt forced to end its job security programme, which has been in place since 1994 and which prevents job cuts until 2029, adding all measures would be discussed with the works council. Good luck with that one! #ev #germany #volkswagen #costcutting #factory #carmaker #familyoffoce #wealth #hedgefunds

Detroit’s automakers are navigating turbulent times; scaled-back EV ambitions, geopolitical uncertainty, General Motors, Ford, and Stellantis grappling with declining market share, costly restructurings, public scrutiny over use of taxpayer-funded incentives, and shifting federal policies and potential trade conflicts make for a lot of turbulence. What are your thoughts on how Detroit and the auto industry can adapt to these challenges? https://lnkd.in/gDXsUvWW

Volkswagen says significant cost cuts are urgently needed as it reports a steep decline in third-quarter earnings and faces employee representatives angry at the possibility of the automaker’s first plant closures in Germany For daily news and analysis subscribe to the https://lnkd.in/gpZkxqHC newsletter. #Autocar #Automotive #Vehicles

🚗Why Volkswagen is shutting down its Plants in germany? For the first time in its 87-year history in Germany, Volkswagen is closing a plant as part of cost-cutting measures to remain competitive. Three main reasons for this decision: 1️⃣ Market Decline: Europe's car market has shrunk by 2 million units since 2019, leading to overcapacity at Volkswagen's factories. 2️⃣ EV Challenges: High production costs and slower EV demand, coupled with fierce competition from China, are affecting profitability. 3️⃣ Strategic Shift: Volkswagen is re-evaluating its operations to meet a €10B cost-saving target by 2026 to stay competitive. source: https://lnkd.in/gRVpNPWu #Volkswagen #Automotive #BusinessStrategy #ElectricVehicles #Germany

Henry Ford, an engineer and founder of Ford Motor Company, transformed the automotive industry with the Model T and assembly line production. His innovations made cars affordable and improved labor standards with the $5 workday. Embrace your setbacks as opportunities for growth! Share how you’ve turned challenges into successes in the comments below. 💡👇 #SkillLync #engineers #Quoteoftheday

Reading the fond tribute to former Ford CEO Donald Petersen I was struck how his leadership was radically different than the automaker’s current management. When Petersen assumed command, Ford vehicles were notoriously shoddy, and the company’s name was considered an acronym for “fix or repair daily.” Petersen hired a quality consultant named W. Edwards Deming, whose expertise was revered in Japan, to turn things around. The strategy for quality control shifted from spotting defects in finished cars to designing and making them right in the first place. It was under Petersen’s leadership that Ford’s advertising slogan was, “Quality is Job 1.” My guess is there are more people who can remember that slogan than there are people who know Ford’s current slogan. Petersen once oversaw Ford’s marketing. Current CEO Jim Farley boasted on an earnings call Wednesday that the company had avoided “about 12 recalls” because of its decision to avoid shipping F-150 pickups, the company’s cash cow. When I read that, I immediately thought, ‘Why can’t Ford build its vehicles right in the first place?’ I was delighted to read that Petersen agreed with me. I’d never buy a vehicle where the CEO admitted that the company had discovered 12 issues even before it shipped, particularly if it sat on a Michigan lot in the winter for several months. Admittedly, I’d never buy a Ford because the company’s vehicles are problem plagued and I don’t like Ford’s ethically challenged business practices. Ford disclosed that it has an inventory of 60,000 F-150s, which it will begin shipping. I’m not a logistics expert but shipping 60,000 vehicles strikes me as a formidable and costly task. I’d welcome knowing who at Ford was responsible for finding lots to store the vehicles and arranging their shipments to dealers. Petersen emphasized teamwork, but Ford has since moved critical engineering and other operations to Mexico and India, so I wonder if and how Farley instills a team spirit. Farley fosters the impression that he’s a one-person management genius. Critics say Ford’s quality issues stem from its decision to fire its most experienced engineers, which forced the company to settle multiple age discrimination lawsuits. The firings were orchestrated by Boston Consulting Group from where Ford COO Marin Gjaja was recruited from. WSJ reported that Petersen was a naval officer. I recall reading a WSJ article decades ago reporting that America’s best CEOs previously were previously military officers. I wonder if these executives would have embraced moving American jobs offshore. WSJ reported that Petersen died in suburban Detroit, so he apparently remained in Michigan long after he retired. By comparison, Farley’s family lives in the UK. Mark Fields, another Ford CEO who was forced out, also refused to relocate his family to the Detroit area. Learning about Ford’s past provides valuable lessons about the current state of the company. https://lnkd.in/gibCbHzr #ford #ceo