VW cuts costs for new tech
German car maker Volkswagen targets €3.7bn by 2020 to boost investment in future projects amid labour talks
Berlin/Frankfurt — Volkswagen (VW) plans to cut €3.7bn in costs at its namesake VW car brand by the end of 2020 to shore up profitability and safeguard investment in future vehicle technology, according to people familiar with the matter. German factories will account for the bulk of the savings, with a target of about €3bn, said the people, who asked not to be identified as the plan is still being discussed by management and worker representatives. The cost-cutting is designed to prepare VW’s biggest unit for a fresh start as of 2021 including turnaround plans for struggling operations in the US and South America, they said. VW declined to comment. Restoring weak profit at the VW brand is key for Europe’s largest vehicle maker to emerge from the emissions-cheating scandal that erupted a year ago. The marque, which was struggling even before the crisis, started a broader programme two years ago to lift earnings by €5bn by 2017, including a push to reduce vehicle variants and trim pu...
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