Under the campaign, customers signing up for an Auto Loan (New Car) with KLeasing from November 28 to December 16, 2019, with loan approved and hire-purchase contract signed by February 15, 2020, are entitled to make an interest-free down payment under a six-month installment plan.

The turnaround is aimed at regaining ground lost to luxury-car leaders Mercedes-Benz and BMW and counter pressure from Tesla. Volkswagen has been scrambling to revive Audi’s fortunes after turmoil sparked by the aftermath of the 2015 diesel-cheating scandal.

By 2025, Audi plans to cut as many as 9,500 jobs in Germany and streamline operations at its two main factories in its home country. The positions will be reduced through attrition and voluntary measures including early retirement, Audi said in a statement Tuesday after reaching an agreement with employee representatives.

The approximately 50,000 remaining Audi employees in Germany will have job guarantees through 2029, and Audi will create 2,000 new jobs to strengthen its engineering muscle for electric cars and digital offerings.

“We are now tackling structural issues in order to prepare Audi for the challenges ahead,” Audi Chief Executive Officer Bram Schot said in the statement. “In times of upheaval, we are making Audi more agile and more efficient.”

Talks with labor unions on the job cuts had dragged on for months, and Volkswagen appointed former BMW executive Markus Duesmann, 50, as the brand’s new chief starting in April to advance the process. He will replace Schot, who succeeded Rupert Stadler after his arrest in connection with the diesel crisis.

“VW group has embarked on a potentially significant reorganization of its activities,” Timm Schulze-Melander, Redburn industry specialist, said in a note. “Things may not move in a straight-line, but progress is expected by investors given the significant challenges in 2021 in Europe.”

Complying with tighter European emissions rules requires significant investment, while trade wars and uncertainty related to Brexit fallout adds to the complexity of managing the disruptive technology shift.

Audi has been wrestling with stricter emission-test procedures that took effect in Europe last year and led to significant production bottlenecks that bogged down deliveries.

The world’s third-largest luxury-car brand has been pushing for a fresh start with a review of its product range, which led to the decision to halt the TT coupe. The former design icon will be replaced with a battery-powered model.

To revive momentum, Audi will launch five fully-electric and seven plug-in hybrid models within two years and broaden the lineup to more than 30 electrified cars by 2025. But the transition will be costly after higher spending on electric models like the E-Tron contributed to returns last year dropping to 6% from 7.8%.

Audi produces the E-Tron at its factory in Brussels. It will add electric-car production at its two main German factories in Ingolstadt and Neckarsulm as well as part of the labor pact to ensure sufficient output.

Audi targets slightly higher deliveries and revenue this year, and an operating profit margin between 7% and 8.5%. The cost-cuts are aimed it lifting margins back to a range of 9% to 11%. Audi didn’t specify whether it can reach the goal next year as planned.

The investment clinching ceremony was attended by President of Indonesia Joko Widodo, Coordinating Minister for Maritime Affairs and Investment of Indonesia Luhut Binsar Pandjaitan, Coordinating Minister for Economic Affairs of Indonesia Airlangga Hartarto, Chairman of Indonesian Investment Coordinating Board Bahlil Lahadalia, Executive Vice Chairman of Hyundai Motor Group Chung Euisun and President and CEO of Hyundai Motor Company Lee Won-hee. The ceremony took place at Hyundai Motor’s automotive plant in southeastern city of Ulsan.

“Establishing Hyundai Motor’s local factory in Indonesia is an achievement based on the Indonesia government’s active cooperation and support,” said Executive Vice Chairman Chung during the ceremony.

He added that the automaker will continue to contribute to the growth of the ASEAN region and meet the Indonesian government’s eco-friendly car policy.

The investment comes three years after the automaker launched a business unit in charge of entry to the Southeast Asian market in 2017.

Located 40 kilometers from the Indonesian capital, Hyundai Motor’s finished car factory will be built over 776,000 square meters by 2021.

Up to $1.55 billion will be injected by 2030 to expand the facility to hold up to 250,000 cars from the currently planned 150,000 vehicles.

The automaker said the manufactured vehicles at its Indonesian plant will be exported to other Southeast Asian countries including the Philippines, Thailand and Vietnam, while exports to Australia and Middle East are also under review.

Separate from finished cars, exports of auto parts for complete knock down, to be assembled at the final destination, are also among the plans, the automaker said.

The latest deal hints at the automaker’s official entry to Southeast Asia’s largest market for vehicles, also aiming to make use of export benefits in the country, such as in-state tax exemptions.

Market data shows that 1.15 million vehicles were sold in Indonesia last year, in a country where some 270 million population reside, posting an average 5 percent economic growth annually.

In major Southeast Asian countries including Indonesia, Thailand, Malaysia, the Philippines, Vietnam and Singapore, up to 4.49 million vehicles are expected to be on roads by 2026, from the current 3.17 million units as of 2017.

Strategically targeting Indonesia, the automaker said it plans to newly develop small-sized sport utility vehicles and compact multipurpose vehicles, while the production for electric vehicles is one of the possible scenarios.

For stable operation at the new Indonesia factory, Hyundai Motor said it will conduct a differentiated strategy and system from product development and production to sales, by focusing on customer-centered strategy.

The automaker said it will adopt a built-to-order system, offering customers more options and reducing the company’s stock management cost.

Amid the rapidly growing e-commerce environment for consumers, the automaker said it will also introduce an omnichannel retail platform for purchasing a car by collaborating with industry-leading e-commerce companies.

Its localization strategy will include developing innovative information technology functions including a voice command system and vehicle control unit technology, targeting young population in the local market.

Hyundai Motor also plans to secure some 100 nationwide dealership networks by the end of 2021, considering customer accessibility and demand per regions.

The automaker said it will also push for collaboration between auto parts makers in South Korea and Indonesia to bolster Indonesian auto parts companies’ technology development.

By Kim Da-sol (ddd@heraldcorp.com)