Published: Thu, November 28, 2019
Markets | By Otis Pena

German vehicle maker Audi to cut 9,500 jobs by 2025

German vehicle maker Audi to cut 9,500 jobs by 2025

"The $6.6 billion thus generated will secure the strategic targeted return corridor of 9 to 11 percent and will flow into future projects such as electrification and digitization", it added.

The positions will be culled through voluntary measures and a policy not to fill vacancies, Audi said in a statement Tuesday. Articles appear on euronews.com for a limited time.

The cuts will primarily be through employee turnover and a new, attractive early-retirement program, says Audi.

"We have reached an important milestone", said Peter Mosch, head of Audi's works council.

"In times of upheaval, we are making Audi more agile and more efficient", Audi CEO Bram Schot said. However, it will extend its employment guarantee for its "core workforce" until 2029 and claims profit-sharing between workers will continue.

The remaining roughly 50,000 workers at Audi's Ingolstadt and Neckarsulm factories will have job security until the end of 2029 under the hard-fought deal struck with labour representatives.

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Audi's restructuring plan comes on the heels of similar announcements by BMW, Daimler and major automotive suppliers such as Continental AG. "This will increase productivity and sustainably strengthen the competitiveness of our German plants".

Audi, which is owned by Volkswagen, says the move will allow it to invest more in electric vehicles and digital working.

Schot will leave his post in April 2020, when Markus Duesmann will take his place.

Under Schot, Audi suffered more than other German manufacturers from the introduction a year ago of strict new emissions testing standards in the European Union, which led to expensive production bottlenecks.

Like its parent Volkswagen (VOW.DE), and rival German carmakers BMW and Mercedes, Audi is under vast pressure to start mass producing electric vehicles - not only to compete in the new electric era, but also to avoid hefty fines under the EU's new Carbon dioxide emissions standards.

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