Audi plans to reduce costs by US$ 12 billion in the next five years

Audi plans to cut costs by US$ 12 billion (10 billion euros) by 2022 to fund its shift to electric cars as it seeks to move on after the emissions scandal, Reuters reported citing unnamed sources close to the carmaker.

According to the news agency, Audi plans to bring five new all-electric models to market in coming years, starting with the e-tron sport-utility vehicle (SUV) to be assembled from 2018 in Brussels.

Despite increasing costs for its electric-car program, the premium automaker wants to keep its operating profit margin at 8% a year at least, said Reuters citing two sources close to Audi. Its profit margin in the first half of this year was 8.9%.

In Mexico, reports by local media state that Audi plans to lay off at least 600 temporary workers at the recently-opened Puebla facility to settle its workforce in 4,200 by the end of year. Some of those workers confirmed they’ve been notified their contracts expire in December.

MexicoNow

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