Porsche Employees Agree To Pay Cuts To Secure Production Of Mission E Electric Car

1 year ago by Jay Cole 37

The Porsche Mission E Had Its World Premiere At The 2015 IAA

The Porsche Mission E Had Its World Premiere At The 2015 IAA

Porsche Mission E - Headed To Production In Germany Thanks To Some Staff Payroll Cuts

Porsche Mission E – Headed To Production In Germany Thanks To Some Staff Payroll Cuts

Making an all electric car sports car isn’t a more complicated process than producing a traditional internal combustion engine machine.

It is however a more expensive proposition…and the return on investment is far from guaranteed.

The working margins are thinner, and the available pool of would-be consumers is narrower due to the unfamiliarity (by and large) with the tech throughout the general car buying population.

So when it came time to pulling the trigger for production on the all-electric Porsche supercar – the Mission E (featuring 300 miles range, 15 minute charges, 0-60 in 3.5 seconds), something had to give at the German automaker’s plant in Zuffenhausen.

800 Volt Charging? Yeah, It Can Do That - Now To Just Find A Station That Can Too

800 Volt Charging? Yeah, It Can Do That (80% Charge in 15 mins) – Now To Just Find A Station That Can Too

Porsche Mission E Concept Interior

Porsche Mission E Concept Interior

Part of the concessions to getting the costs down/margins up on the Mission E was employee wages.

Reuters reports that the wages at Zuffenhausen far outstrip those found at other German factories for the Volkswagen Group; most notably those found in the large Leipzig plant, and in Osnabrueck – which is where the Porsche Cayman and Cayenne are built.

A Porsche spokesperson gave some details to German magazine Automobilwoche, “Employer and employees have jointly drawn up measures that have led to the decision of producing the Mission E model at Zuffenhausen.”

Currently there is some 13,000 workers at the Zuffenhausen plant, and the new deal will see the planned pay increases and benefits between 2016 and 2025 pulled back, with the work week itself expanded from 34 to 35 hours, which will aid in keeping new hires in check and productivity high.

Porsche says the Mission E will require approximately a ~1 billion Euro investment and will add 1,000 jobs to the facility.

Reuters

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37 responses to "Porsche Employees Agree To Pay Cuts To Secure Production Of Mission E Electric Car"

  1. Jacked says:

    Well I’m sure the engineers and executives also took commensurate pay cuts, so it’s totally fair!

    Seriously, this will be one bad arse Tesla competitor. Porsche can build a sedan in their sleep that out-handles a Tesla and the Mission E makes the Model S look like a generic sedan. I hope Tesla are ready to up their game.

    1. Eric says:

      Tesla are bout to down their game. They’re not in it to compete with the likes of Porsche, pandering to the 1%. They want to make EV’s mainstream cars and that requires building many, many more cars, at a much lower price point.

      1. Spider-Dan says:

        I couldn’t help but laugh out loud upon reading this.

        Tesla exclusively makes products for the 1% and their first mass-market car (which was originally supposed to be the Bluestar/Model E/Model III) has been pushed so far out into the horizon that it doesn’t even have a form factor yet. Once Tesla got a taste of that sweet luxury sedan market, the Model III changed from a Toyota/Honda/Chevy competitor to a BMW/Benz/Audi competitor.

        1. Priusmaniac says:

          That is not fair. Elon made clear the target is going from high cost low volume to low cost high volume. It is a necessary evolution to make it really happen instead of just wishing it. It is hard and require steps but it will be done. Elon is honest on this just like he said a Falcon 9 would land back, it was hard and took time but now we have it for real.

    2. Joshua Burstyn says:

      Youre probaby right regarding the performance and quality of the upcoming Porsche. Tesla is worried about lowering the price of their cars though and is using Porsche customers to drive investment and thus infrastructure and innovation. Different focus. My take on the Tesla philosophy is that performance cars are fun, but there is work to do in getting the mass EV rollout going.

    3. EVcarNut says:

      Taking Pay Cuts…..,Same As., Cutting 0ff their Nose to save their Face……

    4. Jon says:

      Tesla is making another roadster after the model 3 and Y release

    5. jerryd says:

      Sorry but Tesla isn’t a slouch in handling and it is hard to make such a low centered CG EV that doesn’t handle heads above the rest.
      But it isn’t the S it needs to worry about as a completely different class though the S does beat it in performance according to the numbers Porsche gave.
      It is the Model 3 high performance
      version.
      On slashing pay to give rich people toys I agree none of the upper officers, etc got pay cuts.
      I also disagree with the article that building a Porsche EV is more expensive than a gas model.
      In fact much cheaper as they don’t have to be EPA certified which as you know is costing VW billions which the workers will have to shoulder instead of the officers that caused it.
      An EV drive, batteries cost less than a Porsche gas drivetrain and takes much less labor.
      GM is doing the Bolt in 2 yrs, what is taking Porsche so long?

      1. ItsNotAboutTheMoney says:

        The Mission e is going to a Porsche, the Bolt will be a Chevrolet.

        1. jerryd says:

          Notabout, and the Tesla will be a Tesla which means Porsche is already beat by the S with the specs on range, acceleration Porsche gave.

      2. “The new deal will see planned pay increases and benefits between 2016 and 2025 pulled back.”

        And you call this “slashing pay?” The article also says this deal was negotiated jointly between management and labor, and that as a result the plant will add 1000 new jobs. This is a good deal for the workers at the plant because it means they will remain employed. Without those rich people buying their toys (as you call them) none of these workers would have jobs and be able to support their families.

        1. SJC says:

          We can create jobs without pandering to the rich. A few crumbs left to the workers who create the productivity is not prosperity.

      3. Jacked says:

        “Tesla isn’t a slouch in handling”

        Oh I agree, but Porsche build some of the best handling cars in the world. I will be surprised if they cannot surpass the Model S by a good margin.

        And regarding style, the Mission E looks like an exotic sports sedan. The Model S is a beautiful car but not quite exotic and when paying $100K for a car people expect exotic. Not that the Model S won’t continue to sell, but they may give up their place as the top EV sedan in the world.

    6. Sting777 says:

      Management pay cuts. Sure. Did hell freeze over in Germany?
      Amazing American Asshole-Failure Management practices being adopted in Germany. This pretty much means the beginning of the end of German Manufacturing.

  2. Mikael says:

    *burr*.. working 35 hours per week, what do they think this is a labor camp?

    Anything above 30 hours is too much. The dutch and Norwegians have it right with 29 hours per week on average.
    I can hardly wait for robots and smarter computers to take it down to 20 hours per week or less.

    1. Eric says:

      I don’t know where you get your numbers, but this Dutchman works a 40-hour week. Many people here work less, but for many that’s only because there aren’t enough full-time jobs to go round. Most would love to work more hours.

      1. Mikael says:

        http://www.eurofound.europa.eu/observatories/eurwork/comparative-information/national-contributions/netherlands/working-time-in-the-european-union-the-netherlands

        It’s easy enough to find lots of stories about average working weeks. The dutch are doing 29 hours on average.

        You also have some of the highest wages in the world in the meantime. Meaning that most people live a very comfortable life with a lot of money and few work hours.

        It’s a good thing that you work that little. You and the norwegians are role models to look up to in this aspect.

      1. Ocean Railroader says:

        After watching this I feel like I wasted five years of my life in collage. In that I have not seen any super jobs outside of making barely above minimum wage. And I got to worry about this crap taking away my table scraps job.

        And it sounds like the world in the future is really going to look like south western Virginia after it got run into the ground in the 1980’s where all the factories and mines closed down due to outsourcing. And the human population running out of money to pay their bills expect welfare. While at the same time they keep on jacking up the cost of living while the ways to pay for a living keep falling down. Haven’t they figured out that it’s living humans that make a economy. In that a smart phone doesn’t need to own a car or shoes or own a house or raise kids or have dreams of doing things.

        My other question is what if these self thinking robots start feeling that they don’t need humans at all or view themselves as being slaves to the humans what will they do if they begin to realize that they own and do everything?

        1. bill howland says:

          Yeah, I see this more as Porsche employees saying they’ll take ‘1/2 a loaf’ as opposed to any intrinsic love of EV’s.

          You wouldn’t think that if this thing is going to have a well over $100,000 price tag, that there would be that many employees whose jobs would be dependent on that car, and not there other high volume models.

          But I’m sorry to hear about your table scraps comment, other than all I can say is the same thing happened to me earlier in my career when my job got ‘outsourced’. Of course, the latest is the basic ongoing demolition of the middle-class.

          The Federal Reserve just said that 1/2 of 25 year olds still live in their childhood home, and so do 1/3 of 30 year olds. That means a huge percentage of the up and comings cannot find enough decent employment to even RENT a household, let alone buy a house.

          So, perhaps the Germans realize that they ultimately have it better than we Americans, and I’m not even referring to their historically much higher per hour wages.

          Germany wisely did not outsource to the extent that our ‘leaders’ did, so they have a greater percentage of their population actually creating wealth in factories.

        2. Mikael says:

          You are looking at it totally wrong. The world will go toward a basic income for every citizen to be able to be liberated from such trivial things as working.
          A start will be for people to work less hours, maybe 5-6 hours per day in four day weeks. Just like the improvements we have had in the last century.

          Look at it rather as the ancient Greeks, having slaves for all the useless work so that they could spend time discussing, inventing and enjoying life.
          We will have time to spend with friends and family, travel, educate ourselves, work a little if you want to, research, invent etc.

  3. Matt says:

    Which rate of charging does “80 pct charge in 15 minutes” imply? It is hardly achieved with 150 kW charging as it only corresponds to 37.5 kWh, which by no means allows for 240 miles of driving.

    1. Pushmi-Pullyu says:

      Plug-in EVs which can be charged faster will create demand for fast-chargers which can charge faster. Current public charging stations will quickly become obsolete as super-fast charging becomes a reality.

      Even if there are no public fast chargers currently deployed which could charge this car at that rate, there almost certainly will be within a couple of years.

      1. Spider-Dan says:

        How much will these super-fast chargers cost to build? And how will those costs be reflected in the price to use them?

        Tesla’s business model of selling ultra-expensive luxury vehicles and then discouraging people from overusing a charging plan sold as “as much as you want” will not translate to $20K cars.

        If super-fast DC charging continues to be price-uncompetitive with gasoline (as it has been since it came on the market), BEV uptake is going to be more challenging than you may expect.

        1. jerryd says:

          Spider-Dan, there are better ways to charge fast than bigger chargers.
          For instance the Model 3 will be able to charge 75%, 150 miles worth, the normal amount, in 15 minutes.
          Even faster as SC’s upgrade.
          800vdc has problems of higher cost both to build, inside the EV and maintaining vs the 375vdc Tesla uses.
          So instead of starting a whole new set of chargers why not make the Porsche more efficient, thus needing a smaller battery pack?
          By their Euro numbers, in the US their pack would only be rated 200mile range so their numbers with 800vdc are no better than the T-3 and a SC.

  4. Ocean Railroader says:

    I really don’t feel sorry for Porsche crying bloody murder that they are paying their workers to much. The reason why is I can’t feel sorry for a car that is $120,000 brand new and the cheapest part on it is $500 bucks. Tesla and GM seems to be doing fine paying their workers.

  5. Tesla is about silicon valley way of doing things. Adapting to constant change. VW(Porsche) is old school bureaucracy and meeting and taking 2 years to make decisions like go diesel vs electric only to be the wrong one. Tesla is not about great cars, it’s about innovating and changing fast being part of the culture. Can we say Tesla autopilot vs Porsche can’t even get ergonomic on the dashboard right. Porsche is stuck in the past doing things old school. Porsche diesel scandal says everything about the company, it’s brand marketing and nothing else.

  6. Markus says:

    What will the Mission E be stand for if the car would be build in Osnabrück (by VW)?

    That Porsche have to be developed and build by Porsche employees in Zuffenhausen! Otherwise… they don’t understand the importance of this new direction!

  7. Steven says:

    It would be nice if Leadership would show some leadership and take the highest percentage of paycuts.

    But in the corporate world, we know that doesn’t happen.

  8. Tenthousandclowns says:

    Goes to show that the car will be built by Porsche EMPLOYEES, not by Porsche inc. People can make intelligent choices, even if large old companies cannot. Also good that they are promising to beat, rather than match, tesla.

    1. Anon says:

      They HAVE to plan for Tesla not stopping their R&D in fast charging and battery swapping. Elon’s already switched to liquid cooled cables to prepare for handling higher voltages and yet provide a cable supple enough for an old lady to use. If that fails, autonomy and snakebot will be there to provide a safer ultra-powered DCFC experience.

      Whatever VW Group does, only forces Tesla to keep pushing their innovation. They thrive on that cycle. That’s the Silicon Valley Way.

    2. jerryd says:

      In what way will the beat Tesla? Not in range, acceleration by a good amount from the numbers Porsche put out.
      And Tesla already has a growing fast SC network you can cross the US, Europe, etc with.
      And by the time they put this out how much farther will Tesla be?
      And will the model 3 P60D even beat the Porsche just as the S does yrs before the Porsche is built?

      1. Priusmaniac says:

        75% in 15 minutes, 3 P60D.
        Well that is interesting but we don’t have that information yet, at least not till march 2016.
        It could be a range of cars as well like Model 3 60, Model 3 60D, Model 3 P60D, Model 3 90, Model 3 90D, Model 3 P90D.
        We will find out.

  9. arne-nl says:

    So much for the fairy tale that the big German brands could build a worthy Tesla competitor with two fingers in the nose (as some commenters have suggested in other articles).

  10. PVH says:

    It seems to me Porsche is aiming at the wrong target, wanting to make a very expensive “we are be best” statement . if VW Group wants to hurt competition they should use same chassis and sell a $70K all electric SUV under their VW, Audi and Porsche brands.

  11. At least this car has the appearance of aerodynamics, even if it has issues on that front with draggy bits in the wind! Lets see if this can get a final Cd anywher close to the current 0.24 of the Model s!

  12. Murrysville EV says:

    The willingness of Porsche workers to do this has less to do with the Mission E vehicle than it does with the diesel scandal at Volkswagen AG.

    VAG is in a precarious position with their diesels, and these workers are simply voting to keep their jobs rather than risk losing them because of the BILLION$ VAG will have to pay in fines, repairs, and court settlements.

    These workers might make the same decision for any new model, not just an EV.