Audi to Cut 9,500 German Jobs in Switch to Electrification
Audi to cut 9,500 jobs to switch to electric vehicles
German automaker Audi announced it will cut 9,500 of its 61,000 jobs in Germany by 2025 to free up funds for investment in electric vehicles.
Volkswagen-owned luxury car brand says it will create 2,000 new digital and electric car jobs and save $ 6.6 billion through a manufacturing reorganization.
The restructuring announcement comes after negotiations between union representatives and Audi. «The company must be slim and fit for the future», – Audi said in a statement.
Trade unions and company management have agreed to cut up to 9,500 jobs by 2025. This will follow the demographic curve – thanks in part to staff turnover and a new, attractive retirement program. A similar reduction in staff will occur in the management
However, jobs will remain safe until 2029. Peter Mosch, chairman of the General Works Council, said: «We’ve reached a milestone: our core workforce’s jobs are safe! Employment Guarantee Extension Is A Great Success In Tough Times».
Audi is also expanding its EV capabilities. According to Audi, the factories in Ingolstadt and Neckarsulm are equipped for the production of electric vehicles, for which more production lines will be equipped. Audi said it will produce 450,000 vehicles a year at its Ingolstadt plant and 225,000 at its Neckarsulm plant near Stuttgart. This means a reduction of about 40,000 vehicles in Ingolstadt and an increase of about the same in Neckarsulm..
Audi CEO Bram Shot said: «In times of turmoil, we make Audi more agile and efficient».
BMW, Daimler and VW, like automakers around the world, are feeling the pressure from a slowing global economy, the China-US trade war, and rising costs of electric vehicle development..
Audi and its parent company Volkswagen faced additional problems: a $ 881 million fine for the emissions scandal («dieselgate») last year and the need to bring the cost of sports cars, sedans and SUVs in line with tough new EU emission regulations. Audi’s electric car unveiled in 2019. The E-tron, the first of 20 battery-powered models, is due to arrive by 2025. VW plans to sell 1 million electric vehicles a year by 2025.