Volkswagen to lower German workers bonus image

The German automaker, the world’s second biggest by sales, said it aims to lower the 2013 bonus for its German workers, as profit and sales were hurt by the tough business in its core European region.

For 2013, sales of the VW brand in the European region went down 3.9 % to 811,800 – although overall they globally accounted for more than 60% of the record group deliveries seen last year, which topped 9.7 million – narrowly beating General Motors to take the global second place.

“The tougher market situation has a direct impact on the size of the bonus,” VW works council chief Bernd Osterloh said in a statement.

Just like all major German automaker, Volkswagen pays early a bonus to its home workers, giving roughly 10% of its operating profit for the year to workers in the form of a bonus. The 100,000 German workers, from its six plants, would be paid for 2013 a total of 6,200 euros ($8,500) each, 1,000 less than 2012 and 1,300 less than 2011.

Via Automotive News Europe