Audi

History

2024

Reduction of 4.5 thousand workers in Germany

On November 7, 2024, it became known that the German automaker Audi will conduct a comprehensive reorganization. The program provides for the reduction of thousands of employees and the closure of a number of capacities.

The measures taken are dictated by the need to optimize operations and reduce costs. The upcoming layoffs, according to Reuters, were announced by the company's CEO Gernot Döllner. The cuts will focus on so-called indirect jobs in the company, that is, positions that are not related to the direct production of vehicles. In particular, more than 2,000 employees can be laid off in new development units.

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Audi

Overall, Audi reportedly intends to reduce headcount by about 15%. This means that in Germany alone, about 4,500 people can lose their jobs. Reduced employees will receive cash compensation and other due payments.

In addition, Audi announced its intention to close its plant in Brussels, where the Q8 E-Tron model is produced - an electric crossover worth 80 thousand euros. It is said that sales of this car did not meet the manufacturer's expectations. About 3 thousand people are under threat of reduction at the enterprise in Brussels.

It is also reported that Germany, Europe's largest car market, is going through difficult times: research indicates that up to 186 thousand jobs could be lost in the region within a decade (by 2035), as automakers face significant difficulties, including severe pressure from Chinese suppliers of electric vehicles. As of the end of 2024, approximately 46 thousand employees of the auto industry lost their jobs in Germany.^[1]

Closing the plant and laying off 3,000 employees

In mid-September 2024, it became known about Audi's decision to close an electric vehicle plant in Brussels. At the same time, up to 3,000 employees may lose their jobs.

Thousands of workers have staged a strike outside the European Parliament in Brussels against the closure of Audi's car plant, Bloomberg reports. Protesters have called for an end to "Chinese dumping" of manufactured goods. People with posters lit smoke bombs with pink and green smoke - the colors of the main unions, as well as firecrackers. At the same time, trade unions called on workers to strike nationwide. High-profile firecracker explosions reflect frustration that neither the Belgian government nor the European Union has been able to avert an industrial crisis in the region, it has been said.

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Reuters

Analysts believe Audi's intentions to close the plant are symptomatic of the challenges facing the entire European electric vehicle industry amid low demand and competition from outside. China Audi is talking about a global decline in customer orders in the luxury electric vehicle segment. This applies to models Q8 e-tron and Q8 Sportback e-tron, which are coming off the assembly line in Brussels. Therefore, Audi is considering the possibility of early termination of production on this site.

They screwed up electric cars. They wanted to introduce innovation. We were going to be a pilot plant, but they drove us into a dead end. It did not work, and now we will have to pay for it, "says Karim Chawki, one of the employees of the enterprise.

The board of Audi Brussels informed the board of the company of its intention to restructure the facility. There are structural problems at the plant in Brussels: the layout of the enterprise is difficult to change due to the special location of the production facility near the city center. In addition, there are high logistics costs.^[2]

Forced appeal to China's SAIC Motor over company's failure to build electric vehicle platform on its own

In May 2024, it was announced that Audi and China's SAIC Motor Corp. would work together on a new car platform as well as three new pure electric models.

Audi has faced delays in developing a new electric vehicle platform, hampering its ability to compete with European and Chinese electric car manufacturers.

2022

Recall of 1300 cars in Russia due to defective software

In early April 2022, it became known about the recall in Russia of about 1,260 Audi cars in which faulty software and electronics problems caused by it were found. Read more here.

Buying a stake in sports car manufacturer McLaren for 650 million euros

In early April 2022, it became known about the sale of a stake in the British McLaren to Audi for 650 million euros, which is 200 million euros more than the price initially offered by the German automaker. Read more here.

2020: Volkswagen increases stake in Audi to 100%

In mid-June 2020, it became known that Volkswagen would pay $267 million to buy out Audi's premium division from minority shareholders. Volkswagen already owns a 99.64% stake in Audi and will now increase its stake to 100%.

The company's plans to buy out the latest Audi securities became known in February.

Volkswagen to pay $267 million to buy out Audi's premium unit from minority shareholders

Volkswagen AG has established the calculation of cash payments to minority shareholders: they will receive 1551.53 euros for each share of AUDI AG, - said a representative of the auto concern.

According to Refinitiv experts, 152,749 shares of Audi are outstanding by mid-June 2020. Accordingly, Volkswagen will have to spend about 237 million euros. The securities transfer is due to take place at Audi's next annual shareholder meeting, which the automaker says is expected in July or August, following a downturn in the coronavirus pandemic.

Given that Volkswagen, even before the deal, owned the deciding vote and virtually the entire company as a whole, these changes would mean little directly to Audi. However, in the future, all sales revenues will go exclusively to the Volkswagen Group concern, including the third of percent that previously belonged to minority shareholders. In this case, it should be borne in mind that Audi is still the most profitable brand of the carmaker.

One way or another, Volkswagen and Audi have big plans for the future: they have been jointly developing new electric vehicles and autonomous driving technologies for many years. The carmaker assumes that the new Audi e-tron GT and Q4 e-tron concept cars will attract everyone's attention, barely entering the market. In this case, even the small share of profit that Volkswagen calculates in the event of a successful completion of the transaction will result in a very significant amount^[3]

2018

Investing 14 billion euros in electric vehicles, self-driving cars and digital services

In early December 2018, Audi announced a €14 billion investment in self-driving cars, electric vehicles and digital services. This budget of the German automaker is calculated until 2023.

In total, Audi has planned a five-year capital expenditure of €40bn. That includes investments in core manufacturing facilities as well as  research and development costs, the company said.

Audi invests 14 billion euros in electric vehicles, self-driving cars and digital services

There is a clear characteristic feature in this planning plan: we apply a very systematic approach to electric vehicles and will be much more focused in the future, says Audi interim chairman Bram Schot. - We consistently prioritize our resources for future-oriented products and services that are very attractive and relevant to the market.

From a press release that Audi released on December 4, 2018, it follows that in subsequent years the company is going to release many new electric cars. In particular, by 2025 Audi will be offering customers approximately 20 models of electrofected cars, half of which will be fully electric.

Audi also works in the direction of digitalization of its vehicles and enterprises, and also expands the range of digital services. In addition, the company is conducting a restructuring, which, according to its estimates, in 2018 will allow it to receive 1 billion euros of additional income.^[4]

Volkswagen, which includes Audi, intends to release 10 million electric cars by the end of 2022 based on its new modular MEB platform. It is planned to launch 27 models or variants of electric vehicles, including under the Audi brand, based on MEB, starting with the Volkswagen ID electric car, the production of which starts at the Zwickau plant (Germany) at the end of 2018.

Ericsson will equip Audi with 5G communication for the development of smart car production

In August 2018, Audi and Ericsson signed a contract under which the Swedish company will equip the partner's enterprise with 5G communication in order to develop smart car production. Read more here.

Entering the top ten most expensive German brands

In January 2018, the company entered the top ten most expensive German brands, according to a rating compiled by advertising and communication holding WPP and marketing agency Kantar Millward Brown. Read more here.

2015: Audi, BMW and Daimler buy Nokia cards

On August 3, 2015, Nokia announced the sale of the mapping business to German auto giants BMW, Daimler and Audi (part of the Volkswagen concern). The purchase cost is estimated at 2.8 billion euros. Read more here.