Volkswagen AG's luxury unit Audi plans to cut labour costs by 20 million euros ($26.05 million) a year, the personnel director and executive board member of Audi told Germany's Automobilwoche magazine. In a report that will be published on Monday, Horst Nuemann told the magazine that despite cost cuts, no job cuts are planned.
Audi and its works council are negotiating an operating agreement that expires at the end of this year, the report said, adding Audi plans to save money by making working hours more flexible so it does not have to pay overtime during busy periods.
The head of Audi's works council Xaver Meier told the magazine saving jobs was the most important priority because it will take less time to assemble future models that will follow the cars made by Audi in Germany now.
The report said Audi was also looking to save money outside of its manufacturing division and was reviewing 19,000 non-manufacturing jobs.
The deal could help Volkswagen get halfway to its target to cut 2 billion euros from wage costs by 2011 while letting workers escape sweeping layoffs.