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Talks stall over thousands of job cuts at VW's Audi - sources

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By Reuters
Talks stall over thousands of job cuts at VW's Audi - sources
FILE PHOTO: The Audi logo is pictured on the new "Aicon" at the 2019 Frankfurt Motor Show (IAA) in Frankfurt, Germany, September 10, 2019. REUTERS/Ralph Orlowski   -   Copyright  Ralph Orlowski(Reuters)

FRANKFURT (Reuters) – Volkswagen’s <VOWG_p.DE> premium unit Audi <NSUG.DE> 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 <BMWG.DE> 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.

Weekly magazine Der Spiegel on Friday said Audi is pushing for 4,000 to 5,000 positions to be eliminated in negotiations, which are led by Audi’s interim boss Bram Schot.

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.

(Reporting by Joern Poltz in Munich; Writing by Ludwig Burger; Editing by Andrew Cawthorne)