Porsche AG workers on strike: join strike in key German industry

Posted: Posted:October 29, 2024

Employees at Porsche AG's Stuttgart plant plan to take part in a series of strikes in Germany's key industries on Tuesday, October 29, 2024, the local branch of IG Metall (Germany's largest industrial union, representing workers in the metal, electrical, mechanical and automotive industries) announced.

This is apparently part of a nationwide campaign demanding higher wages.

In a statement, the Stuttgart branch said, "The strike will start at 2:00 a.m. (German time) on Tuesday, October 29, 2024," but wait, that's 10:00 a.m. on October 29th Japan time.

Does that mean it has already started?

... I checked and found out it had already started. Wow.

The strike began during the night shift at the Zuffenhausen plant, and 30 minutes later staff gathered in front of the Porsche Museum for a public rally.

The strike comes amid collective bargaining over wages and other working conditions for about 3.9 million workers in Germany's auto and other manufacturing industries, IG Metall said in a statement.Volkswagen plant in OsnabrückIn Berlin, 250 workers went on strike, and in Hildesheim, around 400 workers from several companies went on strike overnight.

VW will close at least three factories in Germany and leaders of dozens of the company's works councils have told VW employees that thousands of jobs will be lost, with further protests expected.

The Porsche Stuttgart plant is also on strike starting with today's night shift, so does that mean production at the plant is temporarily halted? Or has it already resumed?

Oh no!

Source:
◆Porsche staff to join wave of strikes in key German industries
◆Germany metalworkers launch strikes over pay

Rika (911supercars.com)

I'm Rika, the author of this article. Ever since Porsche 911 became my favorite car, I've become totally addicted to Porsche, and I can't stop loving Porsche, so I started this blog. My favorite cars are 911 Carrera (991.2), 911 Carrera Cabriolet (992.1), and 911 Carrera T (992.1).

911Supercars in the article

-Porsche: Porsche

Kaz amigo says:

2024年10月29日 at 9:50 PM

Oh no, the factory has stopped? If this drags on, it'll be troublesome. I wonder what will happen?
Will rising wages be reflected in car prices?
Inflation rates are high in Europe and the US due to interest rate hikes, so this kind of thing may happen. It seems that the Fed is going to cut interest rates.

Reply
- Rika (911supercars.com) says:
  
  2024年10月29日 at 10:12 PM
  
  Kaz amigo
  There aren't many details available at this point, but it appears that the people working today's night shift have gone on strike, and it's unclear what has happened since then.
  
  In terms of performance, if the strike was only for the night shift, it may not have a huge impact, but if the strike continues from tomorrow onwards, it would be a different story...
  
  Reply
カート好きの還暦 says:

2024年10月30日 at 12:03 PM

It feels like we've finally reached this point. If you think about the causes, there's no fault on the part of the workers, so it can't be helped. Even if it's just the night shift, it will have an impact. Especially in terms of quality. For example, a recall due to loose bolts.

From our perspective, what will happen to the 911 we ordered? However, the attitude of the manufacturing industry, not just cars, is changing in Japan. Five years ago, the products we are involved in were delivered to end users in six months, but now it takes one to five years due to COVID-19 and reduced resources. In the industry, we were suddenly offered a project that was rejected by other companies even at the highest price, and full production has been decided for the rest of the year, so cost is no longer a priority.
Even if the new grade of the 911 is announced, the delivery time will be long. Especially in Japan, it is cheaper than other countries even considering the exchange rate, so will it be put off?

I feel like COVID isn't over yet in a different sense, and EVs are a problem. It'll probably take 10 years.

Reply
- Rika (911supercars.com) says:
  
  2024年10月30日 at 9:06 PM
  
  60th birthday who likes carts
  Previously, delivery took six months, but now it takes one to five years!!
  
  Porsche has announced a new model of the 911 that is sure to sell well, but it seems like conflicts with employees are growing.
  
  I understand that in the future regulations may become stricter and Porsche will no longer be able to freely make cars with the specifications it really wants, so I understand that they want to make and sell as many models as they can while they can, but I don't want them to sell them in a way that makes it seem like their main purpose is to "secure profits."
  
  ...That said, Porsche is a company and has no choice but to prioritize profits, so I understand that this is unavoidable.
  
  Reply
  - カート好きの還暦 says:
    
    2024年10月31日 at 6:06 PM
    
    I think it's fine for Porsche to be profit-first. Compared to the low profit margins of VW and AUDI, Porsche's is still at 14%, but depending on the situation, it may fall below 10%, so there is no choice but to make thorough selections and focus. The first purpose of a company is to make profits, which is social and public.
    With that premise, there is now a gap between supply and demand. There is no point in making something that users do not want. If there is a shortage of supply for Porsche, which has a high profit margin, why not spot it there? There are also VW and AUDI as risk hedges, and it is impossible to rebuild all the brands at once.
    
    China will not recover in a year or two. Not even in five years. EVs cannot compete with cheap Chinese-made vehicles. In the first place, EVs are a strategy to dominate the Chinese market, which was the world's largest market, so there is no way to succeed, and the question is how to minimize the damage of failure. There is no point in chasing a dream that is so far away now.
    
    For RIKA, Porsche is like a child, so it's time for him to go to Germany and lend her his wisdom.
    
    Reply
    - Rika (911supercars.com) says:
      
      2024年11月1日 at 10:36 AM
      
      60th birthday who likes carts
      Good morning!
      
      I saw a big story in the newspaper this morning about VW's declining profits. I think it's only natural that the VW Group would try to get Porsche, which still has the potential to make money (by announcing the 992.2), to make a profit.
      
      And as I have said many times before, no matter how hard I try, I will never come up with any good ideas (laughs)!
      
      Reply
      - カート好きの還暦 says:
        
        2024年11月1日 at 2:53 PM
        
        I think RIKA's profit-first sales point to the fact that the 992.2 GT3 will be sold as a set with the Taycan at all dealers, and that the slots will not be guaranteed unless it is a higher grade such as Turbo S. I was informed that the number of slots at dealers has already been decided and that it is still in time if you buy it now.
        Having the Taycan involved in the GT3's 25th anniversary is like throwing mud on the ground.
        
        After China comes Germany, the two countries have formed a strong alliance. There is a high probability that negative events will occur, but I hope that Porsche's behavior will not leave a lasting legacy when the situation settles down in a few years.
        It's natural to make a profit from the 911, but even Porsche will suffer a big backlash if they lose their sense of balance. If they destroy a brand that has been nurtured over many years, they will see hell. If they can't revive it without falling into hell, they have no choice but to fall, or rather, they should. It's a violation of compliance. How long will they make the Taycan? If it's not paired with the EV Macan or EV718 next, the original 911 is in sight. History has proven that putting off the EV issue will only make the injury worse, can't they make the decision out of self-preservation?
        The failure of the left-wing approach may lead Germany to move to the right. If that happens, not only Germany but the EU will begin to split and the whole world will be involved. It's not just about Porsches and cars anymore...
        
        It's RIKA's job as a mother to both scold and help her child Porsche (I'm repeating myself).
      - Rika (911supercars.com) says:
        
        2024年11月4日 at 2:48 PM
        
        60th birthday who likes carts
        Hello ~.
        
        I don't think it's good to force people to buy something like "You can't buy xx unless you buy the Taycan," but I think it's inevitable that "people who buy the models that Porsche wants to sell (such as the Taycan) will be given priority at the dealer."
        
        I think it's natural for dealers to prioritize those who are cooperative and can make a profit.
        
        But more than the dealer's response, as karting enthusiast Kanreki-san said, I think the underlying approach, such as "We won't give the dealer a GT car slot unless they sell a Taycan," and "We will determine the number of slots for the GT (or limited edition) model depending on the number of Taycans sold," was fundamentally wrong.
        
        I also think that Porsche AG's actions in the first place have caused them to lose their sense of balance. Of course, Porsche has to secure the number of EVs it sells in order to comply with regulations (politically, etc.), but it's a difficult issue. It's difficult to determine to what extent "Porsche knows about it, but is doing it out of necessity" or "They're forcing it through even though they could manage without it."
        
        Anyway, going back to the topic, it's unfortunate that a phrase that sounds like "You have to buy a Taycan to buy an XX" has spread a while ago. I feel so sorry for the Taycan. Instead of seeing the value of the Taycan as a car, people have started looking at it with different eyes.
カート好きの還暦 says:

2024年11月6日 at 1:25 PM

I understand RIKA's concerns.
It's unfortunate for the Taycan, but it's all about supply and demand, not a game. If you look at it from another perspective, the Taycan is a failure born of Germany's left-wing policies and populism in the name of the environment, and should not be kept alive. Normally, the resources of the Taycan should be redirected to the 911, which is now Germany's biggest cash cow, but there must be circumstances that make it impossible for Porsche and VW to do so, no matter how much they want to. The same goes for the EV Macan and the EV718.
Merkel, who was a center-right party, has changed to a left party, and the current left-wing government is also supported by labor unions, and the coalition Green Party puts the environment first and has made EVs a core policy. VW also got into EVs because of the diesel gate, so they can't say they'll stop, but they've reached their limit, so they're calling for a change of course by closing factories and laying off staff. If a right-wing government doesn't come to power in next year's general election, not only will 9/11 happen, but Germany's manufacturing industry will be devastated.

Germany's turmoil is not something that only concerns Japan.
Japan has not yet emerged from the GHQ occupation, and if one step is wrong, it will be in even greater chaos than Germany. The reason why Germany and Japan, the world's top and second-largest financial nations, are both on austerity budgets is, in a word, because they are defeated nations. The car industry is important in both Japan and Germany, and it cannot be said that it has nothing to do with politics. The 911 was continued with the strengthening of EVs, but now the continuation of the Taycan and the 911 is contradictory.

Would you feel sorry for the Taycan if the 911 was in danger?

Reply
- Rika (911supercars.com) says:
  
  2024年11月6日 at 5:36 PM
  
  60th birthday who likes carts
  Hello ^^
  
  If the 911 is in danger, will I feel sorry for the Taycan? Well, how should I put it, even if it turns out that the Taycan no longer needs to be extended in life and production is discontinued, I don't think I would feel sorry for the Taycan.
  
  What's unfortunate is that, although the Taycan was developed as a full EV, which Porsche is proud of, and the Taycan itself was born with amazing performance, Porsche AG (and the projects that receive instructions from there → each dealer) have given the impression that the Taycan is not seen as a model that people who want a Taycan will buy, but rather is being treated as a burden.
  
  Even though Porsche didn't intend to make a full EV model (rather than a Taycan), it's a shame that they couldn't have done a better job with their marketing/sales strategy... that's how I feel!
  
  I think it's pretty difficult to change an impression once it's been formed, but I hope that the same thing doesn't happen with the EV Macan and EV718 in the future (that they won't feel like a burden)...
  
  Reply
  - カート好きの還暦 says:
    
    2024年11月7日 at 7:12 PM
    
    Apart from the political angle, as you said, there was a lack of marketing. Was the development side too strong? Or was the sales side resting on its laurels?
    I wonder if the Taycan would have been a two-door instead of a four-door because of the narrowness of the rear? What if they had limited production and targeted a hungry market? Of course, it would not be able to meet the CAFE regulations for fuel economy and CO2, and Porsche would have to pay penalties, which would increase the sales price, but I wonder if this could have been avoided if Porsche was just a brand name for VW, like Lexus.
    Either way, the Taycan is a no-brainer now. Even if the price was lowered, there wouldn't be a large number of used cars to sell.
    
    Well, the current German government has effectively collapsed with the right-wing Free Democrats leaving the coalition, but the two left-wing parties have implemented fiscal stimulus while the right-wing Free Democrats have continued their austerity measures, which is the exact opposite of what I expected. If they implement fiscal stimulus, will VW's factory closures and other restructuring be postponed and the EV route continue? But will this just postpone the problem and make the wounds worse? It can also be understood that the left wing will never admit its own failures.
    
    A strategist who becomes obsessed with his tactics will incur great sacrifices.
    
    Reply
    - Rika (911supercars.com) says:
      
      2024年11月10日 at 5:11 PM
      
      60th birthday who likes carts
      Hello ~ ^^
      
      It would be one thing if only Porsche was struggling, but VW (VW Group) as a whole is in a difficult situation, so Porsche will likely be relied upon in strange ways, which could cause Porsche to do things in an even stranger way...and as you say, this could destroy the brand that has been built up over many years.
      
      I'm worried about various recalls.
      
      Reply

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