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VW shares $1.1b in profits with workers

Volkswagen is coughing up a massive NZ$1.1 billion in bonuses to workers after a record year.

The company sold 9.3 million vehicles, up nearly 12 per cent, in boosting revenues by more than 20 per cent to NZ$305 billion during 2012.

That pushed its pre-tax profit to an asonishing NZ$40 billion. Net profits came in at NZ$10.1 billion.

VW's success, however, doesn't just go to shareholders with the company's German workforce sharing some of the record profits.

VW says it will pay German workers a bonus of around €7200 or a little over NZ$11,000 at the current exchange rates. The bonus is being given to around 100,000 employees in Germany.

''Profit sharing is hard earned and deserved; it is the equitable participation of employees in the success,'' said VW board member Horst Neumann.

''The Volkswagen team has done an excellent job in 2012, and this team effort pays off for everyone.''

There is a ''but'' to this. Neumann, warned that the sales situation in southern Europe may affect future growth and profits.

''The road is bumpy,'' he said. ''The consequences of the financial crisis in southern Europe have not been overcome.''

http://www.stuff.co.nz/motoring/8426009/VW-shares-1-1b-in-profits-with-workers

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Good for VW for doing the right thing.

When Detroit automakers share profits, people on TCL go ape**** about the unions--or about the companies being shortsighted.
 

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All major German car manufacturers (VW & Porsche, MB, BMW) are distributing significant bonuses again, this year. VW unquestionably is taking the lead.

This is a huge additional amount of income to regular assembly-line manufacturers. :beer::thumbup:
 

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Good for VW for doing the right thing.

When Detroit automakers share profits, people on TCL go ape**** about the unions--or about the companies being shortsighted.
So does this mean VW would not have given the bonuses if the employees weren't unionized? Does being forced to give a bonus still make VW eligible for "kudos"?

And, if VW was not forced by the unions to hand out big bonuses, isn't this proof unions are no longer needed, or at least don't need to be as powerful?
 

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Good for VW for doing the right thing.

When Detroit automakers share profits, people on TCL go ape**** about the unions--or about the companies being shortsighted.
the made a ton of money so they gave some to the workers. Detroit would have to give them money even if they didn't make a ton. that's the big difference.
 

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If I understand correctly, VW is sharing profit only with their German workers? :confused:
 

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Profit sharing is a good idea in principle, but it never seems to work out. It seems short sighted to not reinvest the profits.
 

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So does this mean VW would not have given the bonuses if the employees weren't unionized? Does being forced to give a bonus still make VW eligible for "kudos"?
Was VW forced to give the bonuses?

And, if VW was not forced by the unions to hand out big bonuses, isn't this proof unions are no longer needed, or at least don't need to be as powerful?
Not at all. One data point does not make a trend.
 

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If I understand correctly, VW is sharing profit only with their German workers? :confused:
Bonuses will be given to both assembly workers and non-assembly (office) employees worldwide. Amounts will vary greatly of course, but assembly workers will generally see the largest bonuses (as a percentage of salary), with the exception of executives.
 

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the made a ton of money so they gave some to the workers. Detroit would have to give them money even if they didn't make a ton. that's the big difference.
Given that GM gave about $7000 to its workers on $7B in profits in 2011, I'd say it's pretty much in line with what VW did this year, so you'll need to prove otherwise.
 

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I thought this was already standard procedure in the automotive world?

Hell, even retried Ford workers were getting yearly bonuses until last year I believe.
 

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:thumbup::thumbup::thumbup:
 

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Profit sharing is a good idea in principle, but it never seems to work out. It seems short sighted to not reinvest the profits.
How is "maintaining high employee retention and not having to train a new workforce" not reinvesting?
 

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Profit sharing is a good idea in principle, but it never seems to work out. It seems short sighted to not reinvest the profits.
reinvesting in your people is the best investment a business can make.

shafting your workforce is the most short sighted business plan out there.
 

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Good on VW - I imagine that after the bonuses go out, would be a great time to buy a quality VW. Nothing better than a light hearted, smiling, pants full of cash worker assembling your product.
 

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Good on VW - I imagine that after the bonuses go out, would be a great time to buy a quality VW. Nothing better than a light hearted, smiling, pants full of cash worker assembling your product.
Just make sure you buy a German made model or you might get a different result. :laugh:
 
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