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Crisis in the Automotive Industry – Achieving social and ecological transformation

Crisis in the Automotive Industry – Achieving social and ecological transformation. Contents Relevance of the European automotive industry Hallmarks of the crisis Extent of the crisis Social and ecological requirements Conditions needed to assert demands

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Crisis in the Automotive Industry – Achieving social and ecological transformation

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  1. Crisis in the Automotive Industry –Achieving social and ecological transformation Contents • Relevance of the European automotive industry • Hallmarks of the crisis • Extent of the crisis • Social and ecological requirements • Conditions needed to assert demands • International labour operations: the Volkswagen Group 1 European Social Forum in Istanbul from 1 to 4 July 2010

  2. Relevance of the European automotive industry • Western Europe, including new member states, accounts for 30% of worldwide auto production. • 2.1 million employees in immediate core sector • The livelihoods of 12 million employees overall depend on European automobile manufacturing Source: Eurostat 2 European Social Forum in Istanbul from 1 to 4 July 2010

  3. Hallmarks of the crisis in the auto industry • Cyclic / macroeconomic crisis, 15% to 25% surplus capacities • Distribution crisis, income / taxation policy • Financial crisis, speculation on financial markets rather than sustainable value creation (real economy) • Ecological crisis, CO2 debate led to a structural crisis in the automotive industry due to shifts in demand  Comprehensive crisis for the capitalistic system 3 European Social Forum in Istanbul from 1 to 4 July 2010

  4. Extent of the crisis • Automobile sales in Europe stagnating at high level • Increasing significance of Asian producers • Growing unemployment • through accelerated streamlining • through dwindling opportunities for temporary employment • through insolvencies in the sector for components supply • through plant closures, e.g. Opel Antwerp • through accelerated concentration processes 4 European Social Forum in Istanbul from 1 to 4 July 2010

  5. Worldwide passenger-car sales by regionForecast for 2010 against 2009 figures 2009 = 52 million pass. cars in total 2010 = 55 million pass. cars planned Western Europe - 6 % UK Russia - 5 % + 7 % Gesamt Pkw - Germany - North America - - 25% France China - - Spain + 23% +4 % - 11% + 10 % - 1% Italy Asia/Pacific South America + 6% - 15% + 7 % Source: IG Metall, Volkswagen AG, own calculations 5 European Social Forum in Istanbul from 1 to 4 July 2010

  6. Social and ecological requirements Goals of equal importance: • Preventing unemployment • Ecologically viable mobility propositions • New focus in Europe: Sustainable investment in employment and environment instead of devising rescue parachutes for banks 6 European Social Forum in Istanbul from 1 to 4 July 2010

  7. Preventing unemployment • Sustainable policies for industry that support transformation of the auto sector • Reduction of overcapacities • Safeguarding employment status quo through development of new commercial fields • Training programmes • Reduction of precarious forms of employment • Reduction of working hours 7 European Social Forum in Istanbul from 1 to 4 July 2010

  8. Ecologically viable mobility propositions • Development and production of environment-friendly automobiles through lightweight construction and the use of regenerative sources of fuel, e.g. electric cars • Development of concepts for ecologically viable mobility propositions 8 European Social Forum in Istanbul from 1 to 4 July 2010

  9. Conditions needed to assert demands • Transformation not as a threatening scenario for the workforce, but as an opportunity for sustainable protection of jobs and environment • Transformation accompanied by training and social safeguards • Transformation in one country not to the detriment of jobs in others (prevention of competition among sites) • Transformation in concert with the workforce and trade unions (more co-determination) 9 European Social Forum in Istanbul from 1 to 4 July 2010

  10. International labour operations: the VW Group 50 years of VW Law 20 years of Euro works councils 10 yeas of Group Global Works Council Charter of Labour Relations 2009 Social Charter 1992 10 European Social Forum in Istanbul from 1 to 4 July 2010

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