Who will fund the shift to electric vehicles? Today, Volkswagen annouced that nearly 10,000 Audi workers will help pay for the transition –– with their jobs:
German carmaker Audi has revealed it will cut 9,500 of its 61,000 jobs in Germany by 2025 to free up funds to invest in electric vehicles.Forbes
Yikes. That’s 15% of Audi’s workforce. Audi and BMW have been the hardest hit by Tesla.
The Volkswagen-owned luxury car brand says it will create 2,000 new jobs, specializing in digitalization and electric cars, and save $6.6 billion (€6 billion) as part of the shakeup.Forbes
That’s a net reduction of 7,500 workers. The comapny will save $6.6 billion for firing them. Sad.
The restructuring announcement emerged following talks between labor representatives and Audi. “The company must become lean and fit for the future,” Audi said in a statement.Forbes
Translation: We better fire some people or we’re going to go bankrupt.
Operational jobs will, however, be safe until 2029. Peter Mosch, chairman of Audi’s General Works Council, said, “We have reached an important milestone: The jobs of our core workforce are secure! The extension of the employment guarantee is a great success in difficult times.”Forbes
Yes, great success! Although many of the people who ran the company into the ground missing the boat on EVs were afraid they may lose they job, they will all have guaranteed employment for the next 10 years! The last thing Audi needs is new people who might try a different strategy.
Audi is also increasing its capacity to produce electric vehicles. Plants in Ingolstadt and Neckarsulm are equipped to produce electric vehicles, Audi said, while more of its production lines will be equipped to do so.Forbes
Rival Daimler, which owns Mercedes-Benz, announced plans earlier this month to cut more than 1,000 jobs.Forbes
Only a measly 1,000 jobs? The big boys at Volkswagen don’t mind making sure 10 times as many people lose their jobs at a sub-brand, just because it’s Tuesday.
Germany’s auto industry, the powerhouse of Europe’s largest economy, has thrown a rod. BMW, Daimler and VW, like automakers around the world, are feeling the squeeze from a slowing global economy, the trade war between China and the United States, and mounting costs from developing electric vehicles.
Audi, and its parent, Volkswagen, have face additional challenges with an $881 million fine over the “dieselgate” emissions scandal last year and the cost of bringing its sports cars, sedans and SUVs in line with tough new European Union emissions regulations.Forbes
Sounds like nothing to worry about, right? They’ll be fine!