Transportation

VW Seeks Deeper Cost Cuts to Bolster Returns in Tough Market

  • CFO says margin below ambition, seeks more productivity
  • VW banks on record model rollout for second-half momentum
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Volkswagen AG is pushing for more cost reductions to better compete in a slowing market marred by a spending slump in China and waning electric-car demand.

Europe’s biggest automaker is reducing capacity at high-cost plants in Germany, Chief Financial Officer Arno Antlitz said in an interview. VW has also stopped hiring and put in place productivity measures at plants as part of a goal to save 20% in overhead costs by 2026.