Volkswagen has developed new electric models at Magna in Graz. However, new production orders are needed to guarantee the future utilization of factory capacity.
Good news for the Magna factory in Graz: Volkswagen is spending at least 450 million euros on the development of the two electric models of the Scout brand. The company’s headquarters in Frankfurt would not confirm a corresponding report in the Kleine Zeitung, but the ink on the contract was probably long dry. However, the Scout is not produced in Thondorf but in South Carolina; After all, the car is also being developed for the American market.
“An order of this size is of course always good for the location. Perhaps this will result in a follow-up order,” says Reinhard Hofer, director of the Magna works council. “But this obviously mainly affects our engineering department.”
Many productions are coming to an end
The fact is that the Graz factory is currently well occupied with around 9,000 employees, but now that production of BMW, Toyota and Jaguar is coming to an end, according to the current state of affairs, this would no longer be the case in the near future. Moreover, electric car manufacturer Fisker is still far behind expectations. When asked, Magna declined to comment on new orders.
Collective bargaining is also being watched like a hawk. On Wednesday, 2,500 workers took part in an eight-hour strike. “People want the wages they are entitled to,” Hofer makes it clear that if negotiations break down again, the next strike will be even bigger.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
