According to foreign media reports, in order to accelerate the process of corporate transformation, Audi announced that it will establish a new “transformation, consulting and organization” department from March 1, 2025 to integrate all transformation-related functions. This measure is another important strategic deployment after the implementation of serial organizational structure adjustment at the beginning of the year, aiming to enhance corporate competitiveness by optimizing organizational efficiency and simplifying management processes. However, Audi will also lay off employees in this restructuring.
Audi said the head of its new division, “Transformation, Consulting and Organization” is led by Yvonne Bettkober, who has extensive experience in cross-border management. Yvonne Bettkober previously served as Director of Global Organization Development and Transformation at the German Volkswagen Group and its subsidiary CARIAD.
It is reported that Audi CEO Gernot Döllner’s goal of implementing the “Audi Agenda” is to reorganize companies, reduce operating costs, and improve innovation capabilities and production efficiency, thereby enhancing Audi’s competitiveness in the automotive market.
However, this transformational change goes far beyond the establishment of new departments. According to the German Business Daily, Audi is planning a cost-cutting plan involving billions of euros. Audi plans to cut material costs by as much as 8 billion euros by 2030, with an average annual reduction of 1.6 billion euros, while reducing labor costs by 1 billion euros per year. Specific measures include large-scale layoffs, cuts in welfare benefits and outsourcing some business. Although the employment guarantee agreement reached between Audi and the German trade union will continue until 2029, companies can still optimize their personnel through voluntary resignation and early retirement.
Judging from the market performance, Audi is facing severe challenges. In 2024, Audi’s global sales were 1.67 million vehicles, a year-on-year decrease of 12%; among which, electric vehicle sales fell 7.8% year-on-year to 164,500 vehicles, with a market share of less than 10%. Audi is in a particularly difficult situation in the two key markets of China and the United States. To reverse the decline in China, Audi is trying to sell electric vehicles without brand identity through its subsidiary. In the US market, Audi will be at a disadvantage in the potential tariff dispute in the United States due to the lack of local production bases. Currently, Audi is considering producing cars in the United States, but building a factory will cost a lot of money and take a long time.
Despite the difficulties, Audi still expects its return on sales to increase significantly by 2030 by implementing a cost optimization plan. Data shows that in the first three quarters of 2024, Audi’s sales return rate was only 2.5%, which is considered to be low in the automotive industry. Audi is expected to release its full 2024 annual financial report in mid-March.