Valmet Automotive has today issued a change negotiation proposal on the need to reduce personnel at the Uusikaupunki car plant. The proposal is based on financial and production-related grounds due to a significant decrease in car production volumes during next autumn.
At the Uusikaupunki car plant, production of Mercedes-Benz’s A-Class will continue as planned. The imminent threat of suspending the model’s production due to component shortages has subsided. The production contract of the GLC SUV will be ending in June, with no replacement production available on a fast schedule.
Change negotiations related to the decrease in car production volumes apply to all personnel in contract manufacturing business line. The need for adjustments will concern a maximum of 1,100 employees. The employer is considering temporary layoffs, terminations of employment and changes in job descriptions. Solutions will be sought to best consider the interests of the personnel and the company.
The change negotiations for personnel adjustments will not apply to battery business, production of the A-Class, or ongoing project work. Valmet Automotive has previously announced two EV projects that will go into production at the Uusikaupunki car plant in 2022 and 2023.
Pasi Rannus, Vice President, Manufacturing, Valmet Automotive
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The Valmet Automotive Group is one of the largest vehicle contract manufacturers in the world, Tier 1 systems supplier for kinematic systems, such as active spoiler systems and charging flaps, for convertible roof systems and for battery systems. In its strategic development, Valmet Automotive Group focuses on electromobility with the development and manufacturing of battery modules as well as packs for electrified vehicles. The activities in the group are organized in three business lines: Manufacturing, EV Systems and Roof & Kinematic Systems. Since its founding in 1968, Valmet Automotive has produced more than 1.7 million vehicles at the Uusikaupunki, Finland plant. Valmet Automotive operates two battery plants in Salo and Uusikaupunki. A third battery plant in Kirchardt, Germany, will start production in 2022. The company has locations in Finland, Germany, and Poland. Valmet Automotive’s largest shareholders are state-owned Finnish investment company Tesi and the Pontos Group, each with a stake of 38.46%. 23.08% is held by the Chinese Contemporary Amperex Technology Limited (CATL), the world leading manufacturer of battery cells for electric vehicles.