Last Tuesday Porsche announced an agreement to phase out future wage increases for employees tasked to build its new all-electric Mission E.
According to Reuters, employees at the Porsche factory in Zuffenhausen, Germany, agreed to abandon future wage increases along with other concessions totaling several hundred million euros in order to secure production of the all-electric luxury sports coupe, due by the end of the decade.
“Employer and employees have jointly drawn up measures that have led to the decision of producing the Mission E model at Zuffenhausen,” a spokesman for Porsche said on Tuesday.
The 13,000 employees at the Stuttgart-Zuffenhausen plant, Porsche’s largest factory, agreed to phase out portions of pay increases scheduled to take effect from 2016 to 2025. In return, an additional 1,000 jobs will be created at the plant in order to produce the Mission E. Plans to eventually increase the work week at the factory from 34 hours to 35 hours per week were also included.
Earlier this month, Porsche announced it would invest over $1 billion euros to bring the 600-horsepower, all-wheel-drive, all-electric sports sedan to market. One of the highlighted features of the Mission E is an 800-volt charging system that can replenish 80 percent of its battery in just 15 minutes.
The wage cut agreement forged between Porsche and its Zuffenhausen employees may be connected to parent Volkswagen AG’s decision to cut its research and development budget in the wake of the ongoing diesel emissions scandal.
VW announced it would cut more than $1 billion from its investment plan for 2016
On Monday, VW’s Audi division announced similar cuts to its own spending plans for 2016, to include the delay of the construction of a new wind tunnel.
While much remains in the air as far as fallout from the VW group’s ongoing crisis, one thing that appears certain is Porsche and its commitment to launching the Mission E by 2020.