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Daimler to Ax at Least 10,000 Jobs in Latest Car Industry Cuts

FRANKFURT (Reuters) – Daimler said on Friday it will cut at least 10,000 jobs worldwide over the next three years, following others in the industry as they cut costs to invest in electric vehicles while grappling with weakening sales.

It marks the third announcement on cost cuts this week by a major German car company as automakers seek to fund huge investments into cleaner and self-driving technologies while demand in China, their biggest market, is falling and a trade war between Washington and Beijing is curbing economic growth.

“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said in a statement.

Daimler, the owner of Mercedes-Benz, revealed the 3% cut in its workforce after reaching an agreement on its plans with labor unions.

They have agreed on a variety of measures to cut costs and jobs, including expanding part-time retirement and a severance program to be offered in Germany. The company is also cutting 10% of worldwide management positions.

Staff reductions would be in the low five-digits, or at least 10,000 people, according to Wilfried Porth, a board member in charge of human resources. The company employed 304,680 staff at the end of the third quarter.

Plans laid out by Daimler in November showed the company aimed to cut staff costs by around 1.4 billion euros ($1.54 billion) by the end of 2022.

The announcement comes days after Volkswagen’s <VOWG_p.DE> luxury car unit Audi said it would cut up to 9,500 jobs or one in ten staff by 2025, freeing up billions of euros to fund its shift toward electric vehicle production.

Also this week, BMW said that its management and labor had reached an agreement on measures to reduce bonus and other pay schemes for staff to cut costs.

Car suppliers Continental and Osram have also announced staff and cost cuts.

Daimler has repeatedly cut its profit outlook over recent months, partly to cover a regulatory crackdown on diesel emissions but also because of a slowing auto market.

Group operating profit will be “significantly lower” than a year ago, the company said last month.

Other measures to reduce staffing costs include offering shorter working weeks.

Agreements in place to prevent forced redundancies in Germany until 2029 will remain in place, Daimler said.

The workforce needs a clear strategy for the future, said Michael Brecht, chairman of Daimler’s works council. “A reduction in capacity must not be carried out on the backs of the employees,” he said.

(Editing by Elaine Hardcastle)

The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin

United Airlines CRJ-550 Tickets Available for Purchase Starting Saturday, October 12


First flight on the world’s only two-cabin, 50-seat aircraft starts Oct. 27 from Chicago O’Hare to Harrisburg, Pennsylvania

CHICAGO, Oct. 10, 2019 /PRNewswire/ — United Airlines today announced tickets for its newest regional fleet member, the Bombardier CRJ-550, will be available for purchase starting Saturday, October 12 for travel beginning Sunday, October 27. The initial schedule includes 15 cities from Chicago O’Hare.

The CRJ-550 is the world’s only 50-seat regional aircraft to offer true first-class seating and other premium amenities, including:

  • Space for every customer to bring a roller bag on board. 
  • A self-serve refreshment center for United First customers featuring a wide assortment of snacks and beverages. 
  • More overall legroom per seat than any other 50-seat aircraft flown by a U.S. airline. 
  • The ability to stay connected while in flight with United Wi-Fi.

Additional cities will be added over the coming weeks from United hubs in Chicago, New York/Newark and Washington Dulles.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers’ best interests at the heart of its service. In addition to today’s news, Unitedrecently announced that MileagePlus miles will now never expire, giving members a lifetime to use miles on flights and experiences. Customers now have more free on board snack options as well, with a choice of Lotus Biscoff cookies, pretzels and the Stroopwafel. The airline also recently released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver – a tool dedicated to improving the experience for customers connecting from one United flight to the next – and launched PlusPoints, a new upgrade benefit for MileagePlus premier members.

About United

United’s shared purpose is “Connecting People. Uniting the World.” We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United and United Express operate approximately 4,900 flights a day to 356 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world’s most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C.United operates 788 mainline aircraft and the airline’s United Express partners operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 193 countries via 27 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United’s parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol “UAL”.

BAE Wins $45 Million Extended Range Cannon Contract

The U.S. Army has awarded BAE Systems a $45 million contract for the Extended Range Cannon Artillery (ERCA) Increment 1 prototype with the purpose of increasing the range and rate of fire on current and future M109A7 self-propelled howitzers.

The development of ERCA is in collaboration with the Army’s Combat Capabilities Development Command (CCDC) Armaments Center.

This prototype phase will address capability gaps in the Army’s indirect fire systems and improve the rate and range of fire with the development of power distribution software and hardware integration solutions. ERCA will be integrated onto the M109A7 and will require the M109A7’s current 39-caliber turret to be replaced with a 58-caliber, 30-foot long gun barrel with the objective of creating firepower double the current range.

“ERCA is a significant technological step forward for the Army’s artillery portfolio,” said Scott Davis, vice president or programs, BAE Systems’ Combat Vehicles business. “We were selected based on our years of experience in the development of self-propelled howitzer systems. Long-range precision fire is a top priority for the Army, and we are pleased to be a partner in efforts to equip soldiers with the latest technology.”

The development program aims to provide the warfighter with extended range while maintaining the weight found in current systems to minimize performance impacts on the chassis. Under separate contracts, BAE Systems is also developing precision guidance kits with anti-jamming capabilities (PGK-AJ) that can operate in the challenging ERCA firing environment. PGK-AJ is compatible with existing and new long-range rounds for multiple firing platforms, including the M109 self-propelled howitzer.

BAE Systems is currently producing the M109A7 configuration for the Army in the low-rate initial production phase.

Development work on ERCA Self Propelled Howitzer will take place at the Army’s Picatinny Arsenal and BAE Systems’ facilities in York, Pennsylvania; Sterling Heights, Michigan and Minneapolis, Minnesota.

David Schacher Photography LLC

Spirit Airlines Adds Two New California Routes to Las Vegas

  • Partners with Airport to Debut First Self Bag Drop System

MIRAMAR, Fla., June 20, 2019 (GLOBE NEWSWIRE) — Spirit Airlines, the fastest growing airline in Las Vegas, continues its investment in the Entertainment Capital of the World with the addition of two new cities to the Spirit network: Burbank and Sacramento. On June 20, Spirit launched nonstop flights between McCarran International Airport (LAS) in Las Vegas and Hollywood Burbank Airport (BUR) and Sacramento International Airport (SMF), each running three times daily. Spirit will now have 55 daily departures from Las Vegas to 29 different destinations.

In partnership with McCarran International Airport, Spirit Airlines also debuted the airport’s first automated self-service bag drop system. Located in the ticketing concourse of Terminal 1, it allows Guests to expedite their check-in experience by paying for and tagging their own bags on the airport’s kiosks. Travelers then proceed directly to newly installed automated bag belts to present their identification and drop their bags. Automated self-service bag drop systems, widely adopted in Europe, highlight the airport and airline’s shared vision of allowing more Guests to customize and control their travel experience.

“We are pleased to partner with Spirit Airlines as we pilot this new automated self-service bag drop system at McCarran International Airport,” said Director of Aviation Rosemary Vassiliadis. “As a 100 percent common-use airport, we have a long history of introducing new, customer-focused technologies geared toward enhancing the passenger experience. We look forward to this rollout with Spirit and to expanding this service to more areas of our operation in the near future.”

“Our growth and investment in Las Vegas has been an ongoing mission for Spirit Airlines,” said Mike Byrom, Spirit Airlines’ Vice President of Airport Services. “Our partnership with McCarran International Airport to install the first automated self-service bag drop system in Las Vegas is a clear message that we are thinking about every facet of our Guest experience with innovative and forward-thinking solutions to elevate our service.”

In addition to Sacramento and Burbank, Spirit will soon be adding Nashville to its network, which will include nonstop service to and from Las Vegas. As of July 2019, Spirit will have grown nearly 50 percent in Las Vegas compared to its capacity only two years earlier. The airline now employs more than 1,000 people in Las Vegas, and Spirit’s rapid expansion has created nearly 300 additional jobs in the last two years.

“We’re delighted by the growth of direct service to Las Vegas by our partners at Spirit Airlines,” said Chris Meyer, Vice President of Global Sales for the Las Vegas Convention and Visitors Authority. “In the past year, Spirit has added direct service from five new markets, conveniently and affordably connecting both business and leisure travelers to our destination. Whether you’re visiting for work or play, Vegas changes everything by taking every experience to a new level, and we’re thrilled about the opportunity to continually reach more travelers across the country.”

VIDEO B-ROLL: https://youtu.be/eLchQp1X5wg

About Spirit Airlines:

Spirit Airlines (SAVE) is committed to delivering the best value in the sky. We are the leader in providing customizable travel options starting with an unbundled fare. This allows every Guest to pay only for the options they choose — like bags, seat assignments and refreshments — something we call À La Smarte. We make it possible for our Guests to venture further and discover more than ever before. Our Fit Fleet® is one of the youngest and most fuel-efficient in the U.S. We operate more than 600 daily flights to 76 destinations in the U.S., Latin America and the Caribbean, and are dedicated to giving back and improving the communities we serve. Come save with us at spirit.com. At Spirit Airlines, we go. We go for you.

Boring Gets $49M Las Vegas Convention Center Contract

LAS VEGAS (AP) — A company backed by tech billionaire Elon Musk has been awarded a nearly $49 million contract to build a transit system using self-driving vehicles underneath the Las Vegas Convention Center.

The board of directors of the Las Vegas Convention and Visitors Authority approved the contract Wednesday with The Boring Company, the Musk-backed enterprise based in Hawthorne, California.

People would be transported underground on self-driving electric vehicles from three types of Tesla Model X chassis. The system will be capable of transporting up to 16 people at time through parallel tunnels, each running in a single direction. The twin tunnel system will run less than a mile (1.6 kilometer) long.

The system also will include a pedestrian tunnel and three underground stations accessible from convention center’s halls.

The company plans to immediately pursue permits to start construction in September. It aims to debut the system by December 2020.

“The first thing that’s important is to get it right,” Authority President and CEO Steve Hill told the Las Vegas Review-Journal . “We want to do it as quickly as possible, but we want our customers to be comfortable with it.”

Las Vegas Mayor Carolyn Goodman cast the only vote against the project. At a meeting last week, she cited concerns about hiring a company that has yet to deliver a transit system.

The authority will reimburse the company as it completes certain stages of the project, like completing excavation for the first station and digging the first 100 feet (30.5 meters) of the first tunnel. Full payment is contingent on the company demonstrating that the system can support an average of 4,400 passengers per hour.

Construction will be able to proceed without disruption to traffic or other surface activity, Hill said. The system also could be expanded, which could be part of the solution to the city’s transportation problems, he said.

VW Plans To Sell Electric Tesla Rival

FRANKFURT (Reuters) – Volkswagen (VOWG_p.DE) intends to sell electric cars for less than 20,000 euros (17,437.4 pounds) and protect German jobs by converting three factories to make the Tesla (TSLA.O) rival, a source familiar with the plans said.

VW and other carmakers are struggling to adapt quickly enough to stringent rules introduced after the carmaker was found to have cheated diesel emissions tests, with its chief executive Herbert Diess warning last month that Germany’s auto industry faces extinction.

Plans for VW’s electric car, known as “MEB entry” and with a production volume of 200,000 vehicles, are due to be discussed at a supervisory board meeting on Nov. 16, the source said, adding that it is also looking to roll out 100,000 of the “I.D. Aero”, a mid-sized sedan.

The Wolfsburg-based carmaker, which declined to comment on the plans, is also expected to discuss far-reaching alliances with battery cell manufacturer SK Innovation <096770.KS> and rival Ford (F.N), the source said.

VW’s strategy shift comes as cities start to ban diesel engine vehicles, forcing carmakers to think of new ways to safeguard 600,000 German industrial jobs, of which 436,000 are at car companies and their suppliers.

An electric van, the ID Buzz, is due to be built at VW’s plant in Hannover, where its T6 Van is made, the source said.

To free up production capacity for electric cars in Hannover, VW’s transporter vans could be produced at a Ford (F.N) plant in Turkey, the source added.

EXPLORATORY TALKS

VW and Ford are in “exploratory talks” to develop self-driving and electric vehicles in an alliance meant to save them billions of dollars, Reuters reported last month.

German VW factories in Emden, Zwickau and Hanover, which all build combustion-engined cars, will switch to electric ones in under the plans being considered, the source said.

Carmakers in Germany agreed on Thursday to spend up to 3,000 euros ($3,430) per vehicle to add more efficient exhaust filtering systems to cut diesel emissions, but failed to prevent bans on diesel vehicles by Cologne and Bonn.

EU lawmakers have agreed to seek a 35 percent cut in car emissions by 2030 after a U.N. report called for dramatic steps to slow global warming.

Diess said to cut average fleet emissions of carbon dioxide in Europe by 30 percent by 2030, VW needs to raise its share offully electric vehicles to 30 percent of new car sales.

The shift from combustion engines to electric cars wouldalso cost 14,000 jobs at VW by 2020 as it takes less time to build an electric car than a conventional one and because jobs will shift overseas to battery manufacturers.

In Europe there are about 126 plants making combustionengines, employing 112,000 people. The largest such plant inEurope is VW’s in Kassel.

(Reporting by Jan Schwartz; Editing by Edward Taylor and Alexander Smith)

Image from newsroom.vw.com

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