Latest surveys in Europe indicate that the next three years could see as many as 80,000 employees shown the door as demand in car sales takes a further dip. That is further bad news in a time when nations across the continent are struggling with their debts and economies are barely on the path of recovery.
The news comes from Germany as makers like Volkswagen and ford among many others are “posting productivity rates in their plants that are unsustainable” and this means in the coming years they might have to shut down as many as 10 factories across Europe to compensate for the losses.
One of the reasons for the current crunch is the hesitation of consumers to spend more money on new cars while old ones continue to give them better mileage with time. Growing cash crunch in homes and reluctance to buy anything that is not an ‘absolute must’, mean that the medium-sized cars are taking a huge sales hit. The small car market though seems to be still pretty vibrant, but that does not really bring home the kind of revenue which will sustain profits in the long run. The report though comes at a time when improvement in vehicle tracking technologies and car fleet management services have indicated that 25.6 million fleet management units will be in operation by 2018.
That might create new employment opportunities elsewhere for those already involved in the automobile business, but it does take unique skill set and technical knowledge which will require different training and initiation programs.
But in an economy where jobs are hard to find and top car companies are handing pink slips, the fleet management sector surely presents a glimmer of hope in a report that is otherwise laced with gloom. Those close to the big car manufacturers say that it will take another 5 years at least, for things to get back on track; and even that is an optimistic