Talks stall over job cuts at VW's Audi: sources

Talks stall over job cuts at VW's Audi: sources

To fund a transition to electric vehicles, Audi cuts jobs. Talks with labour representatives stall.

Audi Ingolstadt. (Photo by Wikimedia Commons)

Volkswagen's premium unit Audi wants to cut thousands of jobs to fund a costly transition to electric vehicles, but talks with powerful labour representatives have hit a logjam, two sources familiar with the matter told Reuters.

Volkswagen tapped former BMW executive Markus Duesmann to take the helm at Audi from April next year after the German premium brand lost key engineering know-how and influence in the wake of the 2015 diesel-cheating scandal.

Audi, which has a 61,000 strong workforce in Germany, declined to comment, as did its works council.

A sticking point is the demand by organised labour to extend an existing moratorium on forced redundancies from 2025 until 2030, the sources said.