The German car manufacturer Audi, a subsidiary of the Volkswagen group, announced on Tuesday the removal 9,500 jobs by 2025 in Germany, a bad news of more coming from this sector affected by the electrification.
To ” prepare the Audi for the challenges that come in and fund the transition electric, Audi expects to improve its profitability and aims to have a positive effect on its financial results of € 6 billion by 2029. The job cuts will occur in particular through the non-replacement of retirements and without dismissal, says the manufacturer in a press release. It also promises to create 2.000 “new posts experts” in fields related to electric mobility and the connected car, including the recruitment will be a priority in the house.
Currently, around 90,000 people work at Audi, including 60,000 in Germany. The company has indicated that the remaining items on its two German sites are guaranteed until 2029.The financial resources generated must meet the margin towards the target of 9-11%, compared to 7.8% in the first nine months of the year 2019.
They will also be invested in the “topics of the future” as the electric or the connected car, ” explains the group in a press release. The goal: to regain competitiveness so that the brand has lost ground against BMW and Mercedes, and accumulates in the electric delay on the main competitor, Tesla. The restructuring plan comes as the German auto industry, a pillar of the economy of the country suffers from the economic slowdown. The costly electrification, necessary to meet the strict CO2 emission standards under penalty of heavy fines, degrades in addition to the margins.
At Audi, sales, turnover and operating profit have declined in the first three quarters of the year, while other major brands of the group — VW, Skoda and Seat — and the automotive industry as a whole have increased.
In its report for the third quarter, the Volkswagen group was, inter alia, that the consequences of the disorder caused by the entry into force of the new standards, anti-pollution, increased investment in new technologies and in personnel expenses, which weighed on the performance of its subsidiary, top of the range.
“We cannot yet be satisfied with the developments at Audi,” said the financial director of the giant, Frank Witter.
Audi will reduce the production capacity of its two German plants, which are already suffering from a decline in demand.
The plan ” ensures our future growth “, commented the boss of the group Bram Schot, who will transfer at the beginning of April his place to Markus Duesmann, a defector from BMW, which should provide a new basis for the premium carmaker after the era Stadler tainted by the scandal diesel.
Mr. Schot had served as interim head of the brand in the wake of the departure in June 2018 Rupert Stadler. This last, briefly incarcerated, was returned to justice in the context of the scandal of diesel engines-fixing which has cost 800 million euros in fines to Audi last year.
Industry in bern
Pillar of the German industry for decades, the automotive sector is now a figure of Achilles heel: the automotive production in the country has declined by 9% over the first ten months of the year, under the effect of a lower foreign demand.
And the sector is vital for Germany: it represents one-fifth of the industry, almost 5% of GDP and more than 800,000 direct jobs.
Beyond the impact of the trade conflict, the loss of popularity of the diesel after the scandal of the dieselgate leaves traces: the automotive supplier Continental is going to give up the manufacture of components in hydraulic motors, diesel and petrol, and therefore provides some 5.500 job cuts in less than 10 years.
Staff reductions have been announced for several large groups, ranging from Volkswagen to Bosch, passing by Daimler and Ford. And the crisis is forcing some companies in the ” Mittelstand “, the dense network of small and medium-sized enterprises considered for the past ten years as the key to the success of the German, on the verge of bankruptcy.
According to a study published last year by the employment agency, some 114.000 jobs will disappear by 2035 due to the transition to electric cars.