Audi is becoming a savings model: a billion euros should go away!

Audi is becoming a savings model: a billion euros should go away!

The situation at Audi, the VW subsidiary, is tense! Gernot Döllner, the new boss of Audi, plans to reduce personnel costs by an incredible one billion euros annually. This reports that Handelsblatt, which refers to internal information. Döllner also wants to reduce material costs by up to eight billion euros by 2030 in order to stabilize the brand's financial situation. The restructuring process is intended to help Audi become more competitive again after the profit margin was recently below five percent. In order to achieve double-digit margins again, a strict savings plan is necessary, even if the target of up to 14 percent now seems unrealistic.

However, Audi and the works council face challenging negotiations about these savings. The general works council Jörg Schlagbauer has already set clear conditions: job security must be extended beyond 2029 and the current collective agreements must be adhered to. Audi is also discussing the production of a new combustion engine model in Ingolstadt, although the original plan was to ensure that no combustion engine would come off the assembly line in main production by 2030. This crazy tactical game shows how complex the current developments at Audi are. Plans for “flattening the start-up curve in electromobility” are also currently being discussed, insiders report, thus revealing the brand’s uncertainties, as can be seen in the article by Cash emerges.