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Volkswagen to Cut Costs by Ten Billion Euros, Expand Retirement Program

As part of the effort to improve economic results, the VW brand intends to focus on optimizing purchasing costs, reducing fixed and production costs and increasing sales. He also plans to expand the early retirement program and keep the hiring freeze in place for now.

Volkswagen intends to reduce costs in the VW brand by ten billion euros by 2026. The company has previously pointed out that high costs and low productivity are undermining the competitiveness of VW passenger cars, Reuters writes.

“We are now strengthening our economic foundations to support our success in the coming years,” VW brand chief Thomas Schäfer said today. “Our efforts will begin to bear fruit next year,” he added. According to him, the measures are key to the brand being able to face increasingly fierce competition in extremely difficult market conditions.

“With the agreement (with employee representatives) on key measures, we have taken a decisive step towards the return of the Volkswagen brand to a leading position,” said Gunnar Kilian, member of the Board of Directors of the Volkswagen Group responsible for human resources. “This requires not only structural measures, but also personnel reduction,” he added.

In addition to the main VW brand, the Volkswagen Group also includes a number of other brands. The concern includes, among others, the Škoda Auto car manufacturer.

2023-12-20 09:34:53
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