The world’s largest automakers are seeing a slump in profits
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The world’s largest automakers are seeing a slump in profits

The condition for these specially promoted employment relationships – the social labor market – is that those affected have received basic security benefits (Hartz IV) for six or more years. They must also be older than 25 years. Without the new possibility of the social labor market with an initially 100 percent wage subsidy, the people affected would have almost no chance of employment. “They would be left over despite the great demand for labor,” said Senius. This included the long-term unemployed with low qualifications, without professional training, with health restrictions, the elderly, but also families and single parents with long unemployment.

“We hope for a ‘glue effect’, that is, that people will stay in the company after the promotion,” said Senius. He appealed to employers to make vigorous use of the social labor market instrument with funding of up to 100 percent of the minimum or collective wage in order to reintegrate the long-term unemployed into working life. In Saxony-Anhalt, every third of the 77,700 unemployed (December 2019) has been without a job for more than a year.

In addition, the legislative package encourages the integration of long-term unemployed people who have been unemployed for at least two years for a period of two years. Of the around 350 funding cases in Saxony-Anhalt to date, 90 percent of those affected by this instrument were taken over by private employers, said Senius. According to the information, the federal government will provide around four billion euros by 2022 for the implementation of the legislative package in Germany. The aim is to reach up to 150,000 long-term unemployed with various support measures to make them fit for the labor market.

The legislative package for a social labor market in Germany passed by the federal government a year ago is starting to take effect in Thuringia. In 1,300 cases, people who had been without a job or successful placement for years found employment subject to social security contributions, said Kay Senius, head of the Saxony-Anhalt-Thuringia regional directorate of the Federal Employment Agency. In around a third (32 percent) of these cases, private companies hired employees via the social labor market.

Even with non-profit (42 percent) and public (around 25 percent) employers, they got a chance to participate in working life again. This included helper work in horticulture, for example. The federal government passed the legislative package a year ago. It promotes the recruitment of long-term unemployed, for example, initially with a 100 percent wage subsidy.

The condition for these specially promoted employment relationships – the social labor market – is that those affected have received basic security benefits, Hartz IV, for six or more years. They must also be older than 25 years.

Without the new possibility of the social labor market, the people affected would have almost no chance of employment, said Senius. “They would be left in spite of the great demand for labor.” This included long-term unemployed with low qualifications, without vocational training, with health restrictions, the elderly, but also families and single parents with long unemployment.

“We hope for a ‘glue effect’, that is, that people will stay in the company after the promotion,” said Senius. He appealed to employers to make vigorous use of the social labor market instrument with funding of up to 100 percent of the minimum or collective wage in order to reintegrate the long-term unemployed into working life.

In addition, the legislative package encourages the integration of long-term unemployed people who have been unemployed for at least two years for a period of two years. Of the around 400 such funding cases in Thuringia so far, 85 percent of those affected by this instrument have been taken over by private employers, said Senius.123helpme.me

The federal government is making around four billion euros available for the implementation of the legislative package in Germany by 2022. The aim is to reach up to 150,000 long-term unemployed with various support measures to make them fit for the labor market. In Thuringia, one in three of the total of around 56,700 unemployed (December 2019) has been without a job for more than a year and is therefore considered long-term unemployed.

Ingolstadt / Berlin (dpa) – The trainees at the automobile manufacturer Audi shouldn’t be a morning grouch. The training company starts at seven o’clock, even after the Audi training centers have closed due to the Corona crisis.

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“At seven o’clock the trainer stands digitally in front of the group and discusses the tasks ahead with the trainees,” says Christoph Hermreck, who is responsible for coordinating vocational training at Audi.

For the approximately 2,400 trainees at Audi, the digital age did not just start with Corona. For several years now, the car manufacturer has been equipping its offspring with tablets for independent learning. “We are of the opinion that the things that you work out for yourself are the things that you can later convey yourself – also the ones that get stuck in the best way,” says Hermreck. “That used to be done in the traditional way on paper with the trainer, then we switched to digital channels.”

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In September 2019, Audi then introduced the open learning platform Moodle, which is also used in a similar form in Bavaria as the “Mebis” school cloud system. Hemreck admits that digital teaching cannot cover the full spectrum of analog training. “The theory lesson and the Moodle topic are going well. These are interactive units that work extremely well. But I think the longer it takes, the greater the urge on the part of young people to work properly on the car or in the control cabinet again stand.”

Hayrettin Topçu, a trainee in the field of automotive mechatronics, also agrees with this statement: “I miss the screw on the car a little, but otherwise learning is kind of cool. I’m glad that our training continues in this way,” says the second year apprentice at Audi in Ingolstadt.

How well the training in the home office can work naturally depends heavily on whether it is commercial or technical. According to the German Chamber of Commerce and Industry (DIHK), there is already a lot of digital work in commercial professions that “can be done from home using modern means of communication”. It looks different in the handicraft. Here, training in the home office is only conceivable for shorter periods of time, as the Central Association of German Crafts (ZDH) reports. Especially when the main focus of the teaching is on practical tasks. “If training in this form is no longer possible over a longer period of time, it may have to be canceled.”

The students at the Berlin Police Academy are also facing difficulties. You are currently supplied digitally with learning material and can also do homework or research topics independently and with the guidance of the trainer. But very practical things, for example how to calm down or even arrest an aggressively acting suspect, can only be incompletely conveyed digitally. But even before the police academy was closed due to a possible risk of infection, the academy management was preparing to purchase a digital learning system, reports Michael Kokert, head of the leadership / pedagogy department at the Berlin police headquarters.

Even in normal times, the police trainees are not always on campus, but are away on site visits, in the offices, on internships or in a week of training. “Against this background, we are in the process of setting up a” virtual classroom “that the police students can constantly look into.” Communication with the class teacher can also take place on this platform when the trainees are not in the academy.

As with the Berlin police, those responsible at Audi are also looking at the timing of the reopening of the educational institutions. “For us, a distance of 1.50 meters is the decisive factor, and logically you need twice as much space,” says Audi manager Hemreck. Instead of organizing time-shifted training in a shift system, the car manufacturer relies on the digital platform. “In order to straighten out the number of apprentices a little, we then continue to focus on home learning in some cases.”

Nevertheless, all those affected hope that the restrictions will end as soon as possible. Some apprentices also fear disadvantages due to the restrictions due to the corona virus. According to the DIHK experts, it is not yet possible to say to what extent the crisis will affect the trainees’ chances of being hired. However: “The sooner the restrictions on business and public life can be relaxed, the better the prospects for trainees to be taken on.” In view of the shortage of skilled workers in Germany, ZDH President Hans Peter Wollseifer points out that trainees are urgently needed. “Because we have to be aware that we will miss any trainee who cannot complete their training due to a crisis in the future.”

In the current situation, according to the ZDH, many companies reach their limits when their situation is threatened. This then also has an impact on the trainees. “We urgently have to avoid that companies that have been severely affected by the crisis have no choice but to terminate training contracts,” says Wollseifer. That is why the association advocates that trainees are also taken into account in the regulations on short-time work benefits.

In 2019, Berlin approved around 131 million euros to improve the regional economic structure. The Senate Department for Economics announced on Thursday that this will secure around 5,600 jobs and create 3700 new jobs. With the grants from the so-called joint commercial task, Berlin primarily supports the investments of small and medium-sized companies that want to create permanent jobs.

In total, this year the support flowed into 203 projects with a value of around 596 million euros. The state then gives, for example, investment grants for the construction of new business premises. If new jobs are created, the funds can also be applied for for wage subsidies. The program is also open to business start-ups.

The commercial joint task is financed half by the federal government and half by the state of Berlin. It should contribute to the creation of equal living conditions in Germany. According to the Berlin Senate Department, more than 250,000 new jobs were created or secured in this way between 1991 and 2018.

The profits of the world’s largest automakers plummeted last year. With increased total sales, the corporations struggle with increased costs. What problems do German car manufacturers have.

The world’s largest automakers are experiencing a slump in profits. As reported by the management consultancy EY, the total sales of the 16 largest car manufacturers rose by 2.5 percent – but sales fell for the first time since 2009, by 0.9 percent. The combined operating profit of the companies fell 9 percent in 2018. Six companies were able to increase their profits, ten had to report losses.

German manufacturers particularly hard hit

“Global trade conflicts, higher tariffs, increasing spending on innovation and problems with the changeover to the new WLTP exhaust gas test procedure led to considerable burdens for the automotive industry in the past year,” explains EY car expert Constantin Gall.

The German car companies Volkswagen, Daimler and BMW were hit particularly hard: They were only able to increase their sales by two percent, but lost ten percent of their operating profit. The Japanese companies Toyota, Mitsubishi, Suzuki, Mazda, Honda and Nissan did better. Combined, their sales rose by three percent and operating profit rose by five percent. On the other hand, the US companies General Motors, Ford and Fiat Chrysler performed particularly poorly, with profits falling by 31 percent.

Japanese corporations benefit from a weak currency

The world’s largest carmaker in terms of sales and sales is still Volkswagen, with 10.7 million cars sold and sales of 235.8 billion euros. Toyota follows closely behind with sales of 230.6 billion euros and 10.6 million vehicles sold. However, Toyota earned almost half more from its cars than Volkswagen. Suzuki ousted BMW as the most profitable automaker from the throne. Toyota and Daimler follow behind.

“The Japanese corporations benefited from the weak yen and were less affected by the punitive tariffs in connection with the Sino-US trade dispute,” explains Gall. “In addition, due to the relatively minor importance of the European market, they hardly had to contend with WLTP problems.”

High spending on new technologies

Despite the mixed business development, the car companies spent consistently more on research and development in 2018 than in the previous year. Overall, the spending of the analyzed companies climbed by six percent to 68.4 billion euros.