VW Targets €3 Billion Savings from Suppliers

Volkswagen AG hopes to save €3 billion by demanding lower prices from its suppliers as it braces for the cost of fixing as many as 11 million diesels rigged to cheat emission tests, Handelsblatt reports.

The German newspaper says other likely cost-saving steps are pay cuts, leaner marketing budgets, a slimmer product lineup and reduced corporate sponsorship activities.

Last week VW said it will cut all except "absolutely vital" investments. New CEO Matthias Mueller warned employees the process "won't be painless."

VW has budgeted €6.5 billion in the third quarter to help cover expenses related to the scandal. But some analysts estimate associated legal fees, recall costs, lost sales and punitive government fines could total €40 billion.