At Audi, EV Push Comes With a Side of Job Cuts
Like parent Volkswagen, premium auto brand Audi is embarking on an electrified journey and, like VW, it would prefer to see the route paved with profits. A difficult task, given the expense of developing such powertrains and the currently limited public demand for the vehicles they power.
Still, Audi is determined to see it through, hoping that one day, perhaps at the mid-point of the coming decade, it will be able to turn a healthy profit off of EVs in a marketplace that’s more receptive of the technology. To get to that promised land, the company will need to free up cash, and it plans to find that dough in its labor costs.
Expect cuts, the company claims.
On Tuesday, Audi sealed a 10-year labor deal with its employees, ending in 2029. By that date, the automaker hopes to achieve a return of 9 to 11 percent, aided by “socially responsible workforce adjustments” and optimized production capacity.
The $6 billion in efficiencies realized over that time span will be invested mainly into electrification, Audi claims.
“In times of upheaval, we are making Audi more agile and more efficient,” said Audi CEO Bram Schot in a statement. “This will increase productivity and sustainably strengthen the competitiveness of our German plants.”
While the company states that employees are its most valuable asset, adding that the labor deal forbids “terminations for operational reasons,” it does admit that its ranks will thin.
“At the same time, the Works Council and the company’s management have agreed to cut up to 9,500 jobs until 2025,” the automaker states. “This will take place along the demographic curve – in particular through employee turnover and a new, attractive early-retirement program. An equivalent percentage staff reduction will take place in management. Nonetheless, Audi will continue to recruit in the coming years. The company plans to create up to 2,000 new expert positions in areas such as electric mobility and digitalization.”
For these positions, Audi claims it will first consider internal candidates before searching for outsiders with appropriate expertise.
The brand’s first EV, the E-Tron crossover, rolled out of Ingolstadt, Germany earlier this year, with a Sportback model and GT version to follow in 2020. In a bid to future-proof the company, the brand plans to slowly prep its Neckarsulm plant for “electric mobility,” thus ensuring extra capacity in an EV-filled world.
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Sayahh Is it 1974 or 1794? The article is inconsistent.
- Laura I just buy a Hyndai Elantra SEL, and My car started to have issues with the AC dont work the air sometimes is really hot and later cold and also I heard a noice in the engine so I went to the dealer for the first service and explain what was hapenning to the AC they told me that the car was getting hot because the vent is not working I didnt know that the car was getting hot because it doesnt show nothing no sign no beep nothing I was surprise and also I notice that it needed engine oil, I think that something is wrong with this car because is a model 23 and I just got it on April only 5 months use. is this normal ? Also my daughter bought the same model and she went for a trip and the car also got hot and it didnt show up in the system she called them and they said to take the car to the dealer for a check up I think that if the cars are new they shouldnt be having this problems.
- JamesGarfield What charging network does the Polestar use?
- JamesGarfield Re: Getting away from union plantsAbout a dozen years or so ago, Caterpillar built a huge new engine plant, just down the road here in Seguin TX. Story has it, Caterpillar came to Seguin City council in advance, and told them their plans. Then they asked for no advanced publicity from Seguin, until announcement day. This new plant was gonna be a non-union replacement for a couple of union plants in IL and SC, and Cat didn't want to stir up union problems until the plan was set. They told Seguin, If you about blab this in advance, we'll walk. Well, Seguin kept quiet as instructed, and the plan went through, with all the usual expected tax abatements given.Plant construction began, but the Caterpillar name was conspicuously absent from anywhere on the site. Instead, the plant was described as being a collective of various contractors and suppliers for Caterpillar. Which in fact, it was. Then comes the day, with the big new plant fully operationa!, that Caterpillar comes in and announces, Hey, Yeah it's our plant, and the Caterpillar name boldly goes up on the front. All you contractor folks, welcome aboard, you're now Caterpillar employees. Then, Cat turns and announces they are closing those two union plants immediately, and will be transporting all the heavy manufacturing equipment to Seguin. None of the union workers, just the equipment. And today, the Caterpillar plant sits out there, humming away happily, making engines for the industry and good paying jobs for us. I'd call that a winner.
- Stuki Moi What Subaru taketh away in costs, dealers will no doubt add right back in adjustments.... Fat chance Subaru will offer a sufficient supply of them.