Volkswagen’s premium auto brand Audi prepares to remove one layer of management or about 10 percent of the division’s executive positions in a cost cutting drive, the unit’s chief executive informed daily Handelsblatt.
“One thing is clear, our cost base is too high,” stated Audi CEO Bram Schot.
He confirmed a target for about 15 billion euros ($17 billion) in cost savings through 2022.
Audi stated in December it would spend 14 billion euros through 2023 in electric mobility, digitalization and autonomous driving.
The division is on the verge of losing its position as VW’s leading development center as the parent discovers potential technology alliances with Ford and other competitors.
Audi aims to decrease the number of engine types by one third and it is also in discussing with shop stewards about stopping the night shift at its Ingolstadt factory, stated Schot.