Valmet Automotive has today issued a change negotiation proposal on the need for temporary personnel layoffs at the Uusikaupunki car plant. The proposal is based on financial and production-related grounds due to a component shortage in the A-Class production, caused by the recent global disruptions in component supply chains.

For Valmet Automotive, the situation has changed rapidly. The company has been informed this week of the component shortage that will force the A-Class production to be suspended. The reason is a disruption in the supply chain, and the current plan is to return to the planned production by July 2022.

The change negotiations related to the situation will concern a maximum of 170 man-years. The negotiation issue will be the need for temporary personnel reductions, and alternative solutions will be sought to best consider the interests of the personnel and the company. The employer is considering layoffs up to 90 days, the change negotiations will not lead to termination of jobs.

Valmet Automotive employs 3,300 people at the Uusikaupunki car plant. The need for temporary adjustments will not apply to the production of the GLC SUV, nor will it have any impact on the ongoing project work.

Additional information:

Mikael Mäki, Manager, Corporate Communications, Valmet Automotive
+358 50 317 4308

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The Valmet Automotive Group is one of the largest vehicle contract manufacturers in the world, Tier 1 systems supplier 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.