VW's Audi making progress in talks on cost cuts: spokesman

HAMBURG/MUNICH (Reuters) – Talks with labor representatives on cutting costs at Volkswagen’s (DE:) luxury car unit Audi (DE:) are making progress, an Audi spokesman said on Tuesday.

“We are well on the way,” the spokesman said. Two people familiar with the matter said that the carmaker and its works council were aiming to reach and communicate an agreement later in the day.

One of the sticking points has been a demand by labor representatives to extend the period during which there can be no forced layoffs, which currently runs until 2025. At parent Volkswagen, forced redundancies have been ruled out until 2029.

Weekly magazine Der Spiegel last week 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.

One of the sources said this would likely not be enough. Audi has 61,000 employees in Germany.

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