The Volkswagen Group is investing heavily in its electric vehicle strategy . With such a broad portfolio of brands, it must allocate resources very carefully, as wastefulness is not in its DNA. Therefore, and following the problems it experienced with the EA189 diesel engines, it is adjusting its budget. The best way to do this is by cutting costs in areas where even a few cents can be saved.
As in any large company, the first department to suffer the consequences is human resources. The easiest way to save money is to lay off, or encourage to leave, part of the workforce . This is precisely what Audi , one of the flagship brands of the German conglomerate, is doing. For this reason, it has recently presented a document explaining how it plans to save up to 6 billion euros by 2025.
Audi needs to save to strengthen its electric strategy
This will be achieved through layoffs, voluntary departures, or early retirements . In total, this severe staff reduction will affect 11 percent of its workforce, including white-collar employees. Based on these figures, we're talking about approximately 9 to 10 employees. On the other hand, they assure that some areas of the business will create jobs . These will be related to electric mobility and digitalization.
Specifically, they expect to add up to 2 new employees to the workforce . These will be distributed between Europe and the Americas, as Audi's electric strategy is global. But that's not all; savings will also come from downsizing at two plants. Specifically, those located in Ingolstadt and Neckarsulm will guarantee a production capacity of 450 and 225 units, respectively.
To facilitate the achievement of the established objectives, the Audi.Zukunft plan commits to investment in Neckarsulm . Specifically, it will create the “Electrification Neckarsulm” fund with €300 million , which will be implemented in stages until 2025. However, Audi CEO Bram Schot assures that this adjustment…
" It will increase productivity and sustainably strengthen the competitiveness of our German factories."
It remains to be seen whether this situation will spread to other brands , such as Seat or Skoda . The Spanish automaker is under scrutiny due to the tensions between Catalan separatists and the Spanish government. We'll have to keep a close eye on things, just in case.
Source – Audi