AutoBeta(AutoBeta.net)11/27 Report--

With the decline of global car sales and the demand for electrification and digitization of enterprises, cost pressure will be the first problem for automobile companies to solve. Massive layoffs have become a major landscape in the automobile manufacturing industry, including auto parts companies. Audi officially announced that it would cut 9500 jobs by 2025, accounting for about 10 per cent of its total workforce, foreign media reported today. This will save Audi 6 billion euros in costs over the next decade to support companies to accelerate the transition to electrification and digitization.

Audi said the company must streamline its internal structure to adapt to the future, some jobs will no longer be needed, new jobs will be added, and about 2000 new jobs will be created in electric vehicles and digitalization. that means a real reduction of 7500 employees.

Bram Bram Schot, Audi's chief executive, said that at a critical period of structural reform, Audi's decision-makers were working to make the team more flexible and efficient, which would enhance Audi's sustainable competitiveness in the market.

In addition, Volkswagen Group has appointed the best candidate for the next CEO of Audi brand. Volkswagen has appointed Markus Duesmann, BMW's global head of procurement and suppliers, as chief executive of its luxury brand Audi, which will start in April at the latest, according to German media reports. The appointment of the new CEO will formally promote the process related to Audi's layoffs and cost-cutting, and continue to promote the reform work of Volkswagen Group.

In the short-term plan, Audi plans to launch 12 models by the end of 2020, five of which are pure electric models and seven hybrid models. In its long-term plan, the company hopes to launch 30 electric models by 2025, 20 of which are pure electric and 10 plug-in hybrids. Audi plans to generate 40% of its sales from electric cars by 2025.

Audi delivered about 1.5063 million new cars worldwide from January to October, down 1.2 per cent from a year earlier, according to sales data, while sales in China, its largest single market, reached 551200, up 2.1 per cent from a year earlier. In terms of performance, Audi's revenue in the first three quarters of this year was 41.3 billion euros, down 6.8% from a year earlier, while operating profit was 3.239 billion euros, up 12.8% from a year earlier.

Global car companies are in a wave of layoffs. Daimler has decided to cut about 1100 management staff worldwide, equivalent to cutting management staff by about 10 per cent to improve performance. Daimler aims to save 1 billion euros by the end of 2022 to help the group better transition to emerging areas such as self-driving and electric cars.

Nissan's performance has fallen sharply, and the company has announced global layoffs of 12500 jobs, or about 10 per cent of Nissan's global workforce, by 2022. The move is designed to reverse the decline of the business. In the first half of fiscal year 2019, Nissan's net profit plunged 73.5% to 65.3 billion yen, the lowest in a decade. Nissan expects net profit in fiscal 2019 to fall by more than one year from a year earlier.

The auto parts giant Continental Group said it plans to restructure its business and further cut costs in view of the slowdown in car production growth in the next five years. The company has announced plans to stop developing internal combustion engines such as gasoline and diesel engines by 2030, while closing seven factories worldwide and cutting 20,000 jobs by 2029.

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