The Born car manufacturer is preparing for the loss of 2.000 jobs, while committed to future projects and innovation in the mobility sector.
The announced job losses at VDL Nedcar, the Dutch independent car manufacturer and part of the VDL Group, has led to a formal request for advice from the works council. The Born car company, which currently employs around 2.500 employees, has confirmed that it will reduce its workforce to around 2024 positions by March 450, despite continued efforts to attract new vehicle projects and clients.
This reduction follows the conversion to a single shift system from November, which already meant a reduction of approximately 1.500 employees. The social plan that applies to employees who lose their jobs provides for reemployment, outplacement support, financial arrangements upon termination of employment and the offering of suitable positions. In addition, a bonus will be paid to employees who stay until March 2024, as part of a “Finish with Pride” program.
This drastic step follows BMW's decision to cancel an agreed production contract and not award follow-on contracts, a decision prompted by lower production volumes caused by the corona pandemic, geopolitical events and disruptive changes in the automotive market. Despite these setbacks, VDL Nedcar has won quality awards and remains a reliable manufacturer, recognized by the allocation of production of the fully electric MINI Cabrio Electric.
The current situation at VDL Nedcar in Born undoubtedly reminds some of the closure of Ford Genk, a period that was accompanied by uncertainty and the loss of jobs for many. This feeling of déjà vu is now being experienced by the employees of VDL Nedcar, some of whom experienced the closure of Ford Genk. Until recently, the car factory employed almost 4.000 people, including approximately 700 Belgians, with a strong representation from the Limburg region. Despite the prospect of job loss, employees can count on a supportive social plan, which, among other things, provides financial arrangements and assistance in finding a new job.
VDL Nedcar, the only car factory in the Netherlands where serial production takes place for third parties, produced the millionth car for client BMW Group on June 15, 2022. We reflected on this milestone together with the more than 4.000 employees of the car factory in Born, Limburg.
With the announcement, VDL Nedcar emphasizes its intention not to let the factory slack off, but rather to invest in retaining competencies that may be necessary in the short term for new car production projects. The company sees this transition as an opportunity to reposition itself as a broad partner in sustainable mobility and is taking steps to strengthen its strategy as an independent car manufacturer with initiatives such as battery pack assembly and special vehicle production.
VDL Nedcar has a rich history since 1967, with almost 6 million cars having rolled off the production line, and has the capacity to produce up to 200.000 cars per year. With an automated production process that includes 1.400 industrial robots, the car manufacturer emphasizes its technological prowess.
