1. Volkswagen brand chief eyes 3.7 billion euros of cost cuts by 2021: Sources

Volkswagen brand chief eyes 3.7 billion euros of cost cuts by 2021: Sources

Volkswagen is targeting about 3.7 billion euros ($4.1 billion) of cost cuts at its core autos division by 2021 as it wrestles with labour leaders over a turnaround plan, sources said.

By: | Berlin | Published: October 20, 2016 5:31 PM
About 3 billion euros of cost cuts would affect VW's operations in Germany, the sources said.  (Reuters) About 3 billion euros of cost cuts would affect VW’s operations in Germany, the sources said. (Reuters)

Volkswagen is targeting about 3.7 billion euros ($4.1 billion) of cost cuts at its core autos division by 2021 as it wrestles with labour leaders over a turnaround plan, sources said.

The targeted savings would be in addition to a 5-billion-euro efficiency programme announced by Volkswagen (VW) in 2014, of which about 2.5 billion euros have already been realised, two people familiar with the negotiations between labour and management told Reuters.

About 3 billion euros of cost cuts would affect VW’s operations in Germany, the sources said.

Talks between brand management and labour leaders over a so-called future pact are faltering at the moment with investment pledges and cost savings proving stumbling blocks, the sources said.

VW declined comment. The works council did not return calls seeking comment.

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