With the reduction in its workforce, Audi estimates savings of close to 6 billion euros in the next 10 years, and plans to invest this money into the design and development of its future electric cars.
Audi will be reducing its workforce by 9,500 in order to reduce the company’s overheads. Subsequently, the saving will be put in to the development of its future technologies, i.e., electric cars. According to the company, the job cuts will be achieved in phased manner in the next six years or by 2025.
Audi estimates that with a lean workforce, the company will be able to free up nearly 6 billion euros over 10 years, and that money will directly flow into the research and development of their future electric cars. However, during the development of its new electric vehicles, the company will, of course, need additional workforce, and as a result, Audi has assured that the company will be creating 2,000 new jobs with clear focus on electric mobility.
The German carmaker will also be overhauling its existing production plants in Neckarsulm and Ingolstadt to make electric vehicles in the future. Audi is aiming to produce 675,000 EVs (combined) from these two locations in the future. In its official statement, the company said that the Ingolstadt site will be producing its premium electric vehicles, whereas the all-electric Audi e-tron GT will be produced at Neckarsulm with the first batch rolling out of the assembly line in 2020. The other production lines will also be gradually equipped for electric mobility, says Audi. By 2025, the company will also invest a total of 300 million euros for the production of electric vehicles in Neckarsulm. At the moment, Audi’s only fully electric vehicle is the e-Tron SUV, which is produced in Brussels, Belgium.