i'm sorry about that next on the that'll be a look at how german comic a fox fox is trying to reinvent itself and made competition from china. the downturn and electric vehicles savings bank result is that you all have more use to excel. guaranteed company name is the calls back, said wow, thank you so much for joining in. welcome to don't hold the bad. a lot of people do that. it's all about saying it aloud. that's what it being nosy, bail. it gets everyone to king. check out the award winning called called don't call back. these are my parents on their wedding day in the folks i can go. and arthur, my child's a dog riding his folks on beetle. and this is me and my 1st car also

a beetle churn. jeremy folks are and has been a part of every day life for families like mine. and the pillar for the economy expend the dominant car brand for decades. but now it's desperate. it's market value has plummeted to lows. last scene after the 2008 financial crisis . and the diesel gaped scandal. the folks log needs to cut costs and it's management has been pushing for plant closures and it's a german heartland. but the w functions differently from any other car company in the world. it's also workers who call the shots until now you have been locked in a steel needs. they have tried to be used to become even more efficient.

but the unions of steps and then preventive, those they've just come after the longest collective bargaining and we w's history . unions and management came to an agreement, folks that is cutting jobs, but leaving its plans in germany open. the question that remains is this a sustainable past for the future? experts are skeptical to this, maybe the final attempt to, to revise the old model without really going where it's very painful, without really thinking about our models. good, correct? it's our production is still correct or should we do or should we arrive a goal for profit, but more painful change? vw fades concealed jeremy's future as a carnation coming up on this episode of business beyond. before we keep going,

let's get something confusing out of the way. first. there are 2 types of folks are . there is the fox valley group, which is a conglomerate that owns 10 different car and truck brands. but in this explain are we will be mainly focusing on the folks i can brand. so the maker of these cars parks on this one is the forces that turn germany into europe's industrial parts. the car maker has 10 factories across the country. almost half of the w as global workforce is employed here. tax body is a highly symbolic company for germany. it represents the car industry. the car industry stands for 15 percent off of the value added within the industrial sector, which is roughly 25 percent of the time and do the b right now. folks, i'm facing a crisis on multiple from the brand of struggling with profitability and sliding

far behind its target for your piedmont. this under performing china is shrinking full of important brands. and the electric vehicle uptake is taking far longer than people expected. those companies will say, okay, we need to come on phones because far too many police folks bought too many production ponds. people sitting around in my home. and so i'll do that. and that's what vw management did in september and next to decades. oh, job guarantee for its german workers and for the 1st time, and it's 87 year history planned on closing factories and jeremy according to the works council. the announcement prompted the biggest strikes in the car makers history. but it's like suddenly it's not that simple. dw functions differently from all of its rivals. it's not just management that has the final say here, in accordance with the law or written just for v w, regional government has voting powers and the companies decisions. most of the time,

the allied with workers interests and at odds with investors the state of lower tax and he has 2 seats on vw supervisory board. those along with a 10 seats given to the labor side. mean workers interests have a majority today vw workers have some of the strongest organized labor power in the world works council leader, the new that color has been called the 2nd the most influential person in the company. after the c o. now she helped prevent the 1st ever vw plant closures in germany. so how did we get here? 1930 ceremony. the country was far from being the auto nation. it is today. just half a 1000000 cars were driving on its roads. friends had 3 times as many went out of the seas. power he set out to change that he hired engineer, getting them processed to come up with a car affordable for most people. the

hitler's car plans needed a car plant and money to finance the construction of the 1st folks out in factory here and vice book. he turned to work as well as the nazis had confiscated all workers union offices, uniting them under the german labor front, expropriated union fun, collected by the german labor funds were used as the starting capital for folks fucking 50000000 device mark. but as the 2nd world war started weapons, not cars rolled off the bus book factory floors, produced by about 20000 forest labors. look at the folk songs history review company built unexplored in its workers from stolen union funds to force labor. when the 2nd world war ground to a halt british allies to control of the plant, again,

workers play the decisive role. they cleared the factories of rubble and restarted production. quickly, the car maker turned into the symbol of germany's post for economic miracles. the folks are literally translated to peoples car, became known as affordable and reliable. by 1955 v w a had produced its 1000000 speed on the car was being exported to almost 100 countries around the world. the activity, who is it on what that is on it could be worth it on java vision. the whole point on a 1000000 based on the new stock industry and or to do the onto testing will get invested . business was moving and we w was hiring perks were meant to learn more workers like higher wages and 16 now they've given in germany at the time font size became synonymous with safety

and prosperity. but one question remained. who owned folks? ok. until now, the german government had acted as an interim trustee, but in 1961 v w one, public becoming germany's biggest company in the same year, the v w law was passed. it was meant to protect the car maker against outside influence like this. so based on the complicated history folks on creative, it's very own brand of capitalism, a hybrid between stage run and family owned, with special protection for its workers. since the vw law was passed, the need for management work or consensus has been a fixture. and so have above average wages at 15.4 percent folks are expense more in labor than all of its competitors. during good

times, it's a deal that worked in 2011 folks. started roof break, didn't record profits, and just the company did well, it's not just the shareholders who benefits workers did to wages rose but now folks are struggling on multiple friends. and it's unique form of capitalism has been put to the test. take electric vehicles, for example. this is it's plans in the co, the east of germany, in 2019 the production of combustion engine cars here it was turned on its head. now only electric vehicles roll off the assembly line. the workers at the plans were retained and retrained. victor music is the biased to see what, what our ownership saw here in mind. so tom, you all the mentioned here. i think the city is guiding model dimensional kind

on some things to produce the software for the beast. folk funding spend billions on an in house software maker. carried headquarters in germany. but we did. these plans have worked out because there's too little work for the 10000 employees instead of 3. so if the day workers here are currently only putting in 2 guys will be off. that's them. ok. we saw on we're supposed to be for the ones i know the pots, so it does increase the factory isn't given installed, but the low demand isn't the only problem. vw, the electric cars are pricey. the id 3 is the cheapest model, but it's still cost more than many of us do your pin competitors. just as cheap chinese cars are rolling onto the european markets. because yours produced in from the probably cause 2000 us just to produce the call

labor a factory and all of the stuff are on the a drum in the flux item. it's the triple price. and sometimes because 5 or 6 on top of that, nobody has electric cars have to come in some us for software glitch since you get to the car the keyless entry doesn't work. the car doesn't unlock, you have to use the key to unlock it, which still works. and the f doesn't work. you're going to model what's the major pharmacies are from soviet controlled by the central against the colors job is testing cars. so that is just black that he can't control because the major major functions of the cops. so this is the major issue and look at the w's factory. and so the car shows the car maker needs to reform, to turn up software as struggles around fox fighting recently. spend $5000000000.00 outsourcing of software project into vivian and american company.

but when it comes to the money, the w spends on its workers, drastic changes aren't, and it's dna. after 70 hours of negotiations, 1st cycle management and workers found a way forward without shutting factories. each for him is not truly shall see out of the white glove. so quotes for buying austin. so i'm a gave mister becomes and that's what he's going to need and i'm calling you about understand watch. so all the time. couldn't just see um these are the types the in store one does logging these 5 targets yet to ask my benefits because i've been cutting the snuff form of gibbs dust. yeah. um finished on to auto anapestic. ti. the shot from con fox on is still cutting jobs 35000 in the next 5 years. but those cuts are meant to happen without terminations to early retirements, for example, v w is also put its job protection scheme back in place. this is,

is very mild outcome, at least in the initial order run. and clearly that for a positive for a volkswagen employee. employees like tossed down on maya who has worked at vw factory and casa for 40 years. it seems to quite cool. if it's a wouldn't solve this, this christy schmidt, my guns can always this openings on here and your last name here. unplugged commodities for the font, the new agreement includes other changes. for example, folks, funds tvs will no longer be produced at the account. but experts are skeptical. what do you think of the agreements? it indeed looks more like a short term fix. an update. you can have a lot of question marks and behind requests of whether this is sufficient to re um, re full siding back on track or disagreement does is it is it will reviews

that costs positions or folks are going, but not with the sledge hammer, not a promptly but more gradually, folks, funds deal to protect its workers. there's truth with history, but some say it is not staying true to the economic future of the country. what we observe in the car industry is the process by increasing the comp production. so the physical assembly of cause a is a takes place in other countries, more than in germany. whereas down the need focuses more on research and develop and everything related services within the industry. and i think this trend would continue, and why don't the indications is that fox 5 will not be able to maintain on its production bronson. john. while the stand off between management and workers is over, for no pressure for folks on reforms will likely last the,

the, the rising president elect. we're in euro do donald trump, ancestors come from traditional university city. what makes dublin a great place to study and award winning? pastry chef. how nina? mit tag you became the world's best piece. yet all this and more coming up on your own max. the donald trump will be sworn in as the 47th.