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VW to cut another $3.4 billion in costs, reduce complexity

Reuters
VW to cut another $3.4 billion in costs, reduce complexity

Volkswagen announced another 3 billion euros ($3.4 billion) of cost cuts on Thursday in an effort to speed up an improvement in profit margins at its core VW brand. A key goal is to improve margins at its mass-market VW brand, which is its largest division by sales but which has long lagged the profitability of rivals such as Japan's Toyota due in part to high labor costs at its German plants. Volkswagen said it aimed to reduce administrative expenses and achieve a "massive reduction" of complexity in the brand's model lineup even while adding EVs to it.