German Manager Magazin: Porsche AG: Job security for the Stuttgart region extended until 2030000326

The sports car manufacturerPorschehas extended the job security for the permanent workforce in the Stuttgart region until the end of July 2030. A company spokesman said the agreement between the board of directors and the works council was in place. The “Stuttgarter Zeitung” and “Stuttgarter Nachrichten” had previously reported on Wednesday. The new job guarantee, with which operational dismissals are excluded, applies to around 22,000 employees, especially in the main plant in Stuttgart-Zuffenhausen and in the development center in Weissach. In addition, several smaller locations benefit from it. Porsche employs around 36,000 people worldwide. The previous agreement on job security expired in July.

According to the newspapers, employees will also receive a promise that the successor generations of the Porsche 911, Cayman and Boxster sports cars will continue to be produced in Zuffenhausen. Also the successor to the Electric cars Taycan should roll off the assembly line in Zuffenhausen. The bodies of all Porsche vehicles as well as a new electric car platform are to be developed in the Weissach development center. The employee representatives in turn agreed to improve productivity and flexibility and thus reduce costs.

The agreement took place in one for the VolkswagenDaughter good financial year despite the Corona crisis. “We’re in very good shape,” said the Porsche spokesman. Porsche had recently made up some ground in the Corona crisis and its return after three quarters was just in the targeted double-digit range. Porsche AG’s revenues, which also include financial services, were around 19.4 billion euros by the end of September – a good 5 percent less than in the same period last year.

At around two billion euros, the operating result was more than a quarter below the previous year’s level. However, this still results in a return of 10.4 percent, which is well above the industry average. The value serves as a measure of the profitability of a company.

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