SHERIDAN, WYOMING – March 22. 2025 - Audi's Strategic Shift: A Focus on Future Readiness
Audi has announced a significant agreement with its works council, outlining a strategic plan to strengthen its competitiveness and ensure future viability. This plan, effective immediately, focuses on enhancing productivity, speed, and flexibility at its German sites in Ingolstadt and Neckarsulm. The agreement extends job protection until the end of 2033, providing stability for its workforce during a period of significant industry transformation.
"In times of profound change, company management and the works council are pulling in the same direction," says Audi CEO Gernot Döllner. "With this clear agreement, we are strengthening Audi's competitiveness and future readiness in equal measure. Together, we are sending a clear signal for more focus, efficiency, and profitability at our German sites. This has created the conditions for continuing the transformation in an scope-driven manner."
Enhancing Productivity and Flexibility: Streamlining Operations
To ensure the German plants remain competitive, Audi is implementing measures to significantly increase productivity, speed, and flexibility. This includes a socially responsible reduction of up to 7,500 jobs in indirect areas by 2029, based on target scenarios. The company aims to streamline operations by reducing bureaucracy, flattening management structures, and leveraging digitalization to reduce workloads.
Xavier Ros, Member of the Board of Management for Human Resources: "We are focusing our team setup and consistently orienting it to the requirements of the future. We are doing this in a socially responsible targeted, step-by-step manner. To this end, we are now entering into a dialog with our employees. The employee representatives are our close partners every step of the way. Our shared Audi path makes us strong and stable."
In addition to workforce adjustments, Audi plans to reduce personnel costs by adjusting payments above the collective wage agreement and variable payments for pay-scale employees. Managers and the Board of Management will also contribute to these savings.
Jörg Schlagbauer, Chairman of the General Works Council says: “Through a temporary reduction and a new structure of the profit share program, the Audi workforce is giving a major contribution to making the four rings weatherproof and future-proof again. Overall, the Audi workforce is investing many, many millions of euros in its own future over coming years.”
Long-Term Job Security and Regional Investment
Audi is reinforcing its commitment to its German sites by extending job protection until December 31, 2033. This move provides clarity and security for employees during a period of economic uncertainty. The company also plans to invest around eight billion euros at its home locations through 2029, demonstrating its dedication to regional development.
Ingolstadt will see the production of another electric model in the entry-level segment, along with the upcoming Audi Q3, produced in collaboration with the Hungarian plant in Győr. This positions the site for a robust and flexible transition to electric mobility. Neckarsulm will focus on strengthening Audi’s digitalization expertise in artificial intelligence and further developing the electronic architecture of combustion-engine vehicles.
Rainer Schirmer, Vice Chairman of the General Works Council, stresses: “We were able to future-proof both sites. For Neckarsulm, this means, among other things, that we were able to secure a “future fund” for plant development, which we can use to set up new production platforms – for future electric models. To this end, Neckarsulm is to be expanded as an AI and digitalization center for the entire Audi Group. The focus here will be specifically on the area of production.”
Strategic Savings and Future Implementation
The measures outlined in the agreement aim to achieve medium-term savings of more than one billion euros annually. Audi will now proceed to define the specific implementation details in each division, including the mix of personnel measures.
This agreement marks a significant step for Audi, ensuring its German sites are well-prepared for the future of electric mobility and technological advancements. By focusing on efficiency, flexibility, and strategic investments, Audi is positioning itself for long-term success in a competitive market.
Stay informed on Audi's future developments. Visit Audi’s official website for the latest updates and model releases.