What is Volkswagen's major cost-cutting target?

Volkswagen aims to achieve a 20% cost reduction across all its brands by the end of 2028.

Why is Volkswagen implementing a cost-saving initiative?

The initiative is designed to restore the company's returns to a sustainable level amidst market challenges like a slump in China and competitive pressures.

Could Volkswagen close plants as part of its cost-cutting plan?

Yes, the possibility of plant closures has been mentioned as a potential measure within the group's cost-saving strategy.

Home / Business and Economy / VW Plans Massive 20% Cost Slash by 2028

VW Plans Massive 20% Cost Slash by 2028

16 Feb

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Summary

Volkswagen plans a significant 20% cost reduction across all brands.
The savings initiative aims to restore sustainable return levels.
Plant closures are being considered as part of the plan.

Volkswagen Group is set to embark on a significant cost-saving mission, aiming for a 20% reduction across all its brands by the close of 2028. This ambitious plan was reportedly unveiled by CEO Oliver Blume and finance chief Arno Antlitz during a recent executive meeting in Berlin.

The primary objective of this group-wide initiative is to elevate returns to a sustainable level. It comes as the automotive giant navigates a challenging market, including a downturn in China, the prospect of U.S. tariffs, and intense competition.

Details on the precise areas for savings and enhanced brand cooperation remain unclear. However, the possibility of plant closures has been put on the table as a potential measure to achieve the targeted cost reductions.

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