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According to its own statements, AVL has invested around 1.3 billion euros in the transformation process in the last five years and wants to invest a further 700 million euros in “expanding its innovative strength” by 2026. “After two years of growth – with 10 percent last year – we now have to strengthen the company’s profitability in order to provide the necessary funds for investments in the future. The economic conditions and strong international competition make this capacity adjustment necessary and create the necessary prerequisites for advancing new technologies. The aim is to further expand AVL’s position as an innovation-driven, global technology leader in the mobility and energy environment,” said CEO Helmut List.
The agenda includes new research and development services in the areas of rail, shipping and energy. In the future, proven (drive) technologies and solutions for the entire vehicle will be driven even more strongly by software or AI and automation. Green innovations on the path towards climate neutrality continue to be a priority. The recently concluded exclusive cooperation with Microsoft illustrates the company’s market position and expertise in the area of digitalization,” the company emphasized.
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1.3 billion euros invested
In 2023, AVL achieved sales of 2.05 billion euros (2022: 1.86 billion euros) with a total of around 12,200 employees (2022: 11,200 employees) worldwide, including 4,300 in Graz, around 200 jobs more than in 2022. This corresponds to an increase of around 10 percent, after growth of 18 percent in 2022, according to AVL. “Further investments in new business areas outside the automotive industry are planned in the next few years.
Since around 94 percent of AVL’s gross value added relates to personnel costs, wages and salaries will not rise at the same rate as other companies in the metal industry, but only by 7 percent and a maximum of 280 euros gross, instead of 400 euros. The social partners still have to agree to this, but an agreement has been reached with the works council, said Tomaschitz. Therefore, the consent is only a “formal act”.
Cooperation with Microsoft
In order to do justice to the transformation process, AVL is reducing its workforce by 70 positions at the Graz location.” A total of another 130 people will be leaving the company by the turn of the year “due to retirements and deletions in the staffing plan,” it said. The staff will be informed on Tuesday In addition, there is the competition and employment protection clause in the collective agreements:
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Also with a view to the weakening German auto industry, he said that the AVL “cannot ignore these developments”. Employees at the headquarters in Graz who are employed by AVL List GmbH are affected.
As a result, the number of employees will fall from 4,300 to around 4,100 by the end of 2024. The release said: “The global automotive industry is undergoing an investment-intensive transformation process. At the same time, high energy, personnel, material and interest costs pose major challenges for the industry. AVL is responding with continuous adjustments to its range of services and investments in the further development of new technologies .
The company announced this to the APA on Tuesday. In addition to the around 200 jobs saved, an agreement was also reached with the works council: the competition and employment protection clause should be applied. Group spokesman Markus Tomaschitz described in an interview with the APA that “the high personnel and energy costs” are challenging for an internationally operating industrial company.
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