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VW Agrees €10 Billion Cost Savings Push With Labor Leaders
- Company targets 20% personnel cost cuts with early retirement
- Faster model development, digital testing to help slash costs
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Volkswagen AG and powerful labor leaders have agreed an initial pact for €10 billion ($11 billion) in cost savings to help boost low returns at the company’s namesake brand.
The measures, following months of talks, target cutting personnel costs by a fifth particularly in administrative roles and offering early retirement options from the age of 57, VW said Tuesday. The company is seeking to more than double returns at the VW brand to 6.5% by 2026 to catch up to peers like Stellantis NV.