VDL Nedcar is winding down with approximately 2,000 jobs by 1 March 2024

In-house production at VDL Nedcar in Born.

As previously announced, VDL Nedcar in Born is forced to terminate jobs from 1 March 2024 due to the planned production halt for BMW Group and the inability to immediately connect this with other vehicle projects. The formal consultation request has been submitted to theWorks Council (OR). Alongside this, VDL Nedcar, the car factory of VDL Groep, continues working relentlessly on new vehicle projects.

The organizational downsizing announced today adds to the reduction of staff (approximately 1,000 temporary workers and 500 permanent employees) following the switch to a single shift from 1 November. Currently, about 2,500 employees work at VDL Nedcar. The proposal submitted to the Works Council involves the reduction of over 2,000 jobs. This means that by 1 March 2024, approximately 450 jobs will remain at VDL Nedcar. These jobs are separate from the Mobility Innovation Centre, which is expected to create several hundred jobs.

'Maximum bet'

Managing Director John van Soerland of VDL Nedcar: “After BMW terminated the production contract until 2030, we fought extremely hard to secure the right connection through car manufacturing. However, due to turbulent conditions in the global automobile market and overcapacity in the automotive industry, this has not been successful. We are disappointed about this and we regret to our employees who are losing their jobs. Meanwhile, our efforts to acquire new clients continue unabated. We remain fully committed to making VDL Nedcar stronger for the future”.

For the employees of VDL Nedcar who will lose their jobs from 1 March 2024, the social plan applies. It details, among other things, how redeployment is handled, what support redundancy recipients receive in terms of outplacement, the financial arrangements upon termination of employment, and the procedure for offering a suitable position. In addition to this social plan, all employees will receive a so-called Finish with Pride bonus of up to €7,500 per person, subject to the agreements with BMW being met, which will run until 1 March 2024.  

Investment

VDL Nedcar does not intend to cut jobs, or lose competencies, known to be needed again in the short term for car production, as of 1 March 2024. Maintaining approximately 450 employees ensures this. VDL Nedcar is therefore keeping more jobs afloat as of 1 March 2024 than is necessary to keep the factory on standby. An investment based on the confidence that a new collaboration will be established. The employees are being engaged in building prototypes for new customers, converting the factory for new clients, manufacturing press parts, completing contractual obligations with BMW, and supporting these activities. For clarity: these jobs are separate from the Mobility Innovation Centre and the facilitation of growth for other VDL companies active in mobility in Born. Consequently, this is also expected to involve several hundred jobs.

Background

VDL Nedcar was in 2020 faced with the significant decisions made by BMW to cancel a recently agreed contract at that time, and that no subsequent contracts would be granted. This decision by BMW was driven by lower production volumes than previously anticipated. Falling car sales as a result of the coronavirus pandemic, geopolitical developments, and disruptive changes in the automotive market underpinned this.

Despite this disappointment, VDL Nedcar has remained a reliable car manufacturer that has also since won global quality awards. These achievements contributed to a limited extension of the production of the current models until 1 March 2024. Furthermore, thanks to its flexibility, reliability, and innovative power, production has been assigned to the world’s first fully electric convertible, the MINI Cabrio Electric. These achievements are of critical importance in building the future resilience of VDL Nedcar.

Transition

As known, VDL in Born is working on the transition from an independent car manufacturer to a broad partner in sustainable mobility. In outline, the strategy consists of: independently producing cars for third parties and innovations in the field of mobility that strengthen the position as an independent car manufacturer, such as the assembly of battery packs and the production and conversion of special 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 since the end of 2012

from the industrial family company VDL Groep in Eindhoven. Currently, there are approximately 2,500 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, almost 6 million cars (DAF, Volvo, Smart, Mitsubishi, MINI, BMW) have rolled off the production line in Born. Currently, VDL Nedcar produces the MINI Cabrio and the MINI Countryman; we also produce the PHEV variant of the MINI Countryman.
www.vdlnedcar.nl