VDL Nedcar switches to a single shift; the number of employees will be reduced as announced

VDL Nedcar, the automotive factory of VDL Groep in Born, is planning to switch to a single shift from 1 November 2023 due to a reduction in work caused by declining volume. The formal proposal for approval to move to a day shift and the advisory request for the inevitable reduction of staff as a consequence, have been submitted today, 1 June, to the works council (OR).

With the move to one team, there are 2,100 jobs at VDL Nedcar. Currently, VDL Nedcar employs a total of 3,950 staff. The car factory in Born plans to reduce approximately 1,000 employees and over 800 temporary workers by 1 November 2023. This includes both production staff and employees of support departments. A further reduction of staff around 1 March 2024, when the contract period with BMW ends, cannot be excluded. However, the aim remains to secure new, substantial vehicle projects, in combination with the planned new activities in Born.

'Hard fought'

Director John van Soerland of VDL Nedcar: “After BMW's termination of the contract until 2030, we fought very hard for the right alignment through car production. That has not succeeded for us so far. Ultimately, the time – due to turbulent circumstances in the automotive market – proved too short to keep the entire population employed. We are disappointed about that, and we regret to our employees who will lose their jobs.”

The plan is to provide employees, who will be involuntarily departing as of 1 November 2023, with clarity as soon as possible. They naturally deserve a solid safety net. Our aim remains to facilitate as many employees as possible to move from job to job on a voluntary basis.

The current social plan, signed in 2021, is valid until April 2024. This social plan has been agreed with trade unions after it was announced that the contract with BMW has been terminated. This safety net is almost twice the statutory compensation. In addition to this social plan, we have committed to a Finish with Pride bonus of up to €7,500 per employee, which will take effect from 1 June 2023.

Background

VDL Nedcar faced significant decisions in 2020 when BMW announced that a recently agreed contract at that time was being canceled and that no follow-up contracts would be granted. This decision by BMW was driven by lower production volumes than previously forecasted. Declining car sales due to the coronavirus pandemic, geopolitical developments, and disruptive changes in the automotive market underpinned this decision.

Despite this disappointment, VDL Nedcar has remained a reliable car manufacturer that has also since won global quality awards. These achievements have contributed to a limited extension of the production of the current models until 1 March 2024. Furthermore, partly due to flexibility, reliability and innovative strength, a prestigious project has been awarded, the production of the world's first fully electric convertible, the MINI Cabrio Electric.

Transition

Despite the inevitable organisational downsizing, VDL Nedcar is doing its utmost to secure employment for as many employees as possible. VDL Nedcar is transitioning from an independent car manufacturer to a broad partner in sustainable mobility. The core strategy is based on three pillars: Vehicle Contract Manufacturing, the Mobility Innovation Centre, and the VDL growth location. These are, respectively, producing cars independently for third parties, innovations in mobility (for example, the assembly of battery packs, the production of autonomous vehicles, sustainable coating of brake discs, and preparing cars for delivery), and facilitating the growth strategy of VDL sister companies that are also active in mobility (such as focusing activities on specialized vehicles).

About VDL Nedcar

VDL Nedcar in Born is an independent car manufacturer that produces cars on behalf of third parties. It is the only large car factory in the Netherlands that has been part of the industrial family business VDL Groep in Eindhoven since late 2012. Currently, there are approximately 4,000 employees. The factory has a production capacity of up to 200,000 cars per year, based on two-shift operations. VDL Nedcar utilises a highly automated production process (1,400 industrial robots). Since its inception in 1967, over 5.5 million cars (DAF, Volvo, Smart, Mitsubishi, MINI, BMW) have rolled off the production line in Born. VDL Nedcar currently produces the MINI Convertible, the MINI Convertible Electric, and the MINI Countryman; from the MINI Countryman, we also produce the PHEV variant.
www.vdlnedcar.nl