Thread Number: 95354  /  Tag: Modern Automatic Washers
Miele launches worldwide efficiency program
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Post# 1200141   2/25/2024 at 07:25 by Logixx (Germany)        

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Post# 1200146 , Reply# 1   2/25/2024 at 08:00 by henene4 (Heidenheim a.d. Brenz (Germany))        

Working in for a German competitor since October 2022, this is an issue through out the industry.

I finished my bachelors degree in engineering in October 2023, "rode out" my contract until end of this month in the hope my manager could secure a full employment for me.
We had our production for our factory drop by 20% from 2022 to 2023. Full warehouse.
Then, a few days after things got going, personnel cuts for the coming years were announced in December.
So, luckily, I had a backup plan and am starting my masters degree now. Extending my current contract isn't an issue since it's a limited students contact.

But it's the same across any sector of engineering really.
Interest rates are high, costs of personnel are high, so, reducing costs where ever possible has been a thing.
Applied to A LOT of local positions outside of the appliance sector and about 10% of all the positions I applied for were just cancelled during the application selection process.



My specific department deals with a lot of post development changes to appliances, so, a lot of the cost cutting measures go through our hands.
We do built in cooling at our plant, and we changed everything from compressor suppliers to several rounds of flat glass suppliers.
(Believe me, the number of times I had to work on parts releases for glass plates made me find a new for of dislike form that specific part.)



So the past year has been trying to counteract the situation through cost cutting, but now, it's "reallocation" of the work force.

Which is a huge shame. I might be biased cause I have been personally affected - but about half of all employees in our factory is 50 years or older and NOT A SINGLE EMPLOYEE under 30 has a full, unlimited employment contract.

It's a very difficult time. You can't really justify laying off those employees that have been with a company for more than a decade.
At the same time the reason EU manufacturers are loosing ground just IS that they are stuck a decade or two behind the competitors from the mainly asian markets in terms of thinking and acting.

Now NOT hiring new talent but actually INCREASING the average age of employees will JUST NOT counteract the underlying issue.
It's a necessary step - but it's gonna bite their asses in the long term.

Sure somebody like me would likely come back.
But MOST of the young employees are not appliance heads. If they are let go because of that situation with that context, they won't come back to the company again.



It's a hard time in the industry really.


Post# 1200152 , Reply# 2   2/25/2024 at 09:13 by donprohel (I live in Munich - Germany, but I am Italian)        
Been there...

I have worked for several big companies, and sooner or later I have seen this sort of "plans" in each of them, and every time the so-called plan can be summarised as: "waste millions if not billions out of incompetent people and especially stupid and over-paid managers, then every few years fire people and cut some expenses, or at least say you are cutting them; in any case, keep over-paying the same stupid managers that caused the mess, then wait for the next crisis".

I think the best of them all was the "Business Improvement Programme" which meant:
- tons of stupid bla-bla
. fire lots of people
- stop paying pensions
- sell the company to a competitor


Post# 1200153 , Reply# 3   2/25/2024 at 10:13 by henene4 (Heidenheim a.d. Brenz (Germany))        
Pensions

Luckily, not much to fear there, at least for the BSH people.

Our "Rente" payed by the state is untouched by fireings aside from your potential unemployment.

The additional pension plans work a little different with the BSH backed plans.
You pay a chosen amount of your income BEFORE tax into a special investment plan. BSH only matches a certain percentage until a certain amount per month.

That investment is handled by a financial company, so while under BSH supervision and guidance, the money is NOT under control.
It's your money from the moment it enters that account.

When you reach a certain age you can either get a lump sum payment or monthly payments and it only gets taxed as income then.


It's an annoying situation, but I think still way better to have that happen to one in Germany than the US.


Post# 1200168 , Reply# 4   2/25/2024 at 12:35 by Logixx (Germany)        

logixx's profile picture
I know there are always many sides to a story. Yet, I'd like to know how Miele come up with their pricing. I've been doing some online price comparison (idealo.de) for the most expensive washer by three popular brands.

Bosch 10 kg, 1600 spin, auto-dosing, German-made: 1000€.

AEG 10 kg, 1550 spin, water softener: 1100€. Ditching the water softener and going for auto-dosing is also about 1100€ online.

Miele 9 kg, 1600 spin, auto-dosing, German-made: 2600€. 😱

The Miele does have the nice touch interface and the most versatile auto-dosing... but that upcharge! I know... many factors come into play. But 2.5x as expensive?


Post# 1200175 , Reply# 5   2/25/2024 at 13:46 by henene4 (Heidenheim a.d. Brenz (Germany))        

I mean, Miele IS a premium brand.

And you can get a more comparable machine from Mile for 1900€ or so.
That TOL machine is dual fill AND has a steam generator.
Keep in mind the properly imported VZugs retail for 3.5k...

However I did NOT agree or understand with Miele's decision to raise prices a few years ago. They just marked up everything 10% with NO context. And they since have done so again.


There is less demand in the middle price segment.
The death of the middle class is a thing in the EU, too.
People either want cheap, or are willing to spend basically what ever.


I bought my H7364 BP from Miele for 1899€ in 2020 or 2021 - which is INSANE money for an oven, but just at the border of what is justifiable.
It has almost everything Miele has to offer and any feature you may ask from an oven.

That same - EXACT SAME - oven is now 2399€, more than 25% more expensive.

Same picture in their washers and dryers. Even DWs got more expensive.
That took them from pricey but justifiable to just expensive.



Best part is that in built in refrigeration specifically, a bunch of Miele models are just BSH made now.

With a respective mark up.
Miele got outside business advisors about 5 years or so back and it showed.
Unfortunately not really for the good apparently.


Post# 1200200 , Reply# 6   2/25/2024 at 17:02 by GELaundry4ever (Nacogdoches, TX, USA)        
American market

How will this impact the American market?


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