⌂ Home News VW Employs 60% More People Than Toyota to Build Fewer Cars

VW Employs 60% More People Than Toyota to Build Fewer Cars

VW Employs 60% More People Than Toyota to Build Fewer Cars
Volkswagen and Toyota car manufacturing comparison
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Volkswagen Group employs around 629,000 people worldwide, while Toyota gets by with about 391,000.

Despite that huge difference, Toyota delivered 5.39 million vehicles during the first half of the year, far ahead of VW's 4.13 million.

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That's an unwelcome reminder that having more people doesn't automatically mean getting more done. The comparison, highlighted in a report by Germany's DW, isn't completely black and white.

Volkswagen still does far more work in-house than many rivals, from manufacturing components to engineering and development.

That helped make it one of the world's industrial giants, but it also saddled the company with a cost base that's become increasingly difficult to defend.

The truth is that almost every legacy automaker is being forced to rethink the way it operates.

Chinese manufacturers have become genuine global rivals instead of low-cost imitators, profits have come under pressure in China, electric vehicle demand hasn't always matched expectations, and tariffs, high energy prices, and geopolitical turmoil haven't exactly helped matters.

Thousands of VW Jobs to Go

VW has responded by dramatically expanding its restructuring plans, with as many as 140,000 jobs now expected to disappear as the company hunts for billions in savings.

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It isn't alone either.

BMW recently announced plans to reduce its workforce by around 8,000 employees after slowing Chinese demand battered sales and profits.

Mercedes-Benz is taking a different approach, but it's chasing the same goal.

Alongside voluntary job reductions, it's cutting costs by shifting production of some of its best-selling models from Germany to Hungary, where labor costs are a fraction of those at home.

None of this means Germany's auto industry is finished.

It does mean, as BMW's CEO Milan Nedeljković told workers last week, per Reuters, “the rules dictating the industry have substantially changed.”

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Right now, Toyota's leaner approach is making Volkswagen's old formula look increasingly expensive.

D
Editors Team
Author: Daniel
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