Former Tesla execs Matt Renna and Dustin Krause had been with VW since 2018, joining as the automaker prepared to sell EVs in the U.S. They departed in spring for jobs with EV startups.

Mercedes has said it will focus more narrowly on the luxury segment and cut out some entry-level models with lower margins.

The automaker does not expect the situation at the Italian factory, which employs 7,000 workers, to stabilize until the end of 2022.

Hungary's Foreign Minister, Peter Szijjarto, said Audi would start manufacturing the new drivetrains in 2025, adding 500 jobs at its Gyor plant.