BERLIN, Dec 18 (Reuters) - Volkswagen's Chief Executive Oliver Blume pledged continued cost cutting at Europe's largest carmaker on Thursday, as the company seeks to remain competitive amid industry-
Volkswagen to Intensify Cost Cutting Efforts
BERLIN, Dec 18 (Reuters) - Volkswagen's Chief Executive Oliver Blume pledged continued cost cutting at Europe's largest carmaker on Thursday, as the company seeks to remain competitive amid industry-wide challenges.
Speaking at the group's two-day management meeting in Berlin, Blume identified leadership, focus and finances as three central priorities for the new year, a company spokesman said.
"The task now is to continue to consistently reduce our costs in order to remain competitive in the long term," Blume said, adding that the company has the keys to a bright future through its brands and products.
Chief Financial Officer Arno Antlitz said the German carmaker must generate more revenue with fewer resources to succeed going forward.
"This requires even stricter cost management and investment discipline," Antlitz said, outlining plans for improved electric vehicle margins, significantly reduced fixed and factory costs, and focused investment in future technologies.
"We need more Group synergies, less complexity and a strengthening of our market position in the USA and other regions outside Europe," he added.
In December 2024, Volkswagen struck an agreement with unions to drastically restructure its German operations, including 35,000 jobs cuts by 2030, as it faces off with cheaper Chinese rivals and navigates a slower-than-expected shift to electric vehicles.
Antlitz said overheads this year fell below the previous year's level for the first time in a long time.
(Reporting by Christina Amann, writing by Maria Martinez, editing by Susan Fenton)
