Crisis at Volkswagen

6300 jobs in Austria directly dependent on VW

(Bild: APA/dpa/Boris Roessler)

In Austria, 135 companies supply German VW plants, with 6300 jobs directly dependent on VW orders. Most of these companies are located in the automotive cluster in Upper Austria and Styria.

This is the result of a recent study by the Supply Chain Intelligence Institute Austria (ASCII), the Logistikum of the University of Applied Sciences Upper Austria and the Complexity Science Hub (CSH).

According to the study, the crisis at the German car manufacturer will particularly affect component manufacturers in the short term, while machine suppliers are more likely to suffer long-term losses. According to the study, the domestic automotive industry produces goods worth 28.5 billion euros annually, 85% of which are exported. 65 percent of this is exported to Germany.

"VW crisis just the tip of the iceberg"
"Ultimately, the current crisis at VW is just the tip of the iceberg. EU-wide, structural reforms and clear prioritization are necessary to prevent far-reaching losses in value creation throughout the industry and to narrow the gap to China in the next technological leap," says Markus Gerschberger, Deputy Director of ASCII.

This includes reducing energy costs, increasing automation and promoting technological competitiveness, he is quoted as saying in the study published on Monday.