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VW Can Save $2 Billion with Fewer Models and Trim Levels
Volkswagen AG has identified steps to cut €1.9 billion ($2 billion) in costs by reducing the number of VW brand models and trim packages it offers, says Bernd Osterloh, the company’s top labor representative.
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Volkswagen AG has identified steps to cut €1.9 billion ($2 billion) in costs by reducing the number of VW brand models and trim packages it offers, says Bernd Osterloh, the company’s top labor representative.
The company is looking for €5 billion in savings as it braces for the impact of multiple emission test scandals. Osterloh tells reporters that reducing the number of models could lower costs in such areas as logistics without cutting jobs.
VW currently estimates it will spend about €8.7 billion ($9.2 billion) on the costs of recalls, regulatory fines and lawsuits related to at least 11 million vehicles tainted by emission test cheating.
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