VDL Nedcar to reduce number of employees by 2,000 by 1 March 2024
As previously announced, due to the planned production stop for BMW Group and the inability to find direct connection with other automotive projects, VDL Nedcar in Born is forced to cut jobs by 1 March 2024. The formal request for advice on this was submitted to the Works Council (OR). Parallel to this, VDL Nedcar, VDL Groep’s car factory, continues to work on new vehicle projects.
The organisational downsizing announced today comes on top of the reduction of employees (around 1,000 temporary workers and 500 permanent employees) because of the switch to one-shift operation from 1 November. As of today, about 2,500 employees work at VDL Nedcar. The intention submitted to the Works Council involves the reduction of more than 2,000 jobs. This means that approximately 450 jobs will remain at VDL Nedcar by 1 March 2024. These jobs are independent of the Mobility Innovation Centre which is expected to create some hundreds of jobs.
John van Soerland, Managing Director of VDL Nedcar: 'After BMW's termination of the 2030 contract, we have fought extremely hard for the right connection through car production. Mainly due to turbulent conditions in the global car market and overcapacity in the automotive industry, we did not succeed. We regret this and to our employees who will lose their jobs, we are sorry. Meanwhile, our acquisition efforts to attract new customers continue. We remain fully committed to making VDL Nedcar stronger for the future".
To VDL Nedcar employees who will lose their jobs as of 1 March 2024, the social plan applies. This plan sets out, among other things, how redeployment will be implemented, the support redundant employees will receive in the field of outplacement, the financial arrangements upon termination of employment and the procedure for offering suitable positions. In addition to this social plan, if the agreements with BMW are met, all employees will receive a so-called Finish with Pride bonus of up to 7,500 euro per person running until 1 March 2024.
VDL Nedcar does not want to cut jobs or lose competences by 1 March 2024, that are known to be needed again in the short term for car production. With the retention of around 450 employees, this is guaranteed. This means that VDL Nedcar will keep more jobs in place as of 1 March 2024 than necessary to keep the factory standby. An investment based on confidence that a new partnership will be established. These employees will work on prototypes for new customers, convert the factory for new clients, manufacture press parts, finalise contractual obligations with BMW and support all these activities. To be clear, these jobs are irrespective of the Mobility Innovation Centre and the facilitation in Born of the growth of other VDL companies active in mobility. This is also expected to involve several hundred jobs.
In 2020, VDL Nedcar was faced with sweeping decisions by BMW that a recently agreed contract was cancelled and no follow-up contracts would be awarded. This decision by BMW was prompted by lower production volumes than previously anticipated. Declining car sales due to the corona pandemic, geopolitical developments and disruptive developments in the automotive market were at the root of this.
Despite this disappointment, VDL Nedcar has remained a deliverable car factory that has continued to win global quality awards ever since. These achievements have contributed to a limited extension of building the current models until 1 March 2024. Furthermore, partly due to its flexibility, reliability and innovativeness, a prestigious project has been awarded, the production of the world's first all-electric convertible, the MINI Cabrio Electric. These achievements are of critical value when it comes to building the continued future resilience of VDL Nedcar.
As is well known, VDL in Born is working on the transition from an independent car manufacturer to a broad partner in sustainable mobility. In outline, the strategy consists of: independently producing cars for third parties and innovations in the field of mobility that strengthen its position as an independent car manufacturer, for example the assembly of battery packs and the production and conversion of special vehicles.
About VDL Nedcar
VDL Nedcar in Born is an independent car manufacturer that produces cars on behalf of third parties. It is the only major car factory in the Netherlands that has been part of industrial family business VDL Groep in Eindhoven since the end of 2012. It currently employs around 2,500 people. The factory has a production capacity of up to 200,000 cars per year, based on two-shift operations. VDL Nedcar uses a highly automated production process (1,400 industrial robots). Since its inception in 1967, over 5.5 million cars (DAF, Volvo, Smart, Mitsubishi, MINI, BMW) rolled off the production line in Born. VDL Nedcar currently produces the MINI Cabrio, the MINI Cabrio Electric and the MINI Countryman; we also produce the PHEV variant of the MINI Countryman.