BERLIN, Dec 18 (Reuters) – Volkswagen is moving forward with its cost reduction initiative, the director of the German automaker’s main brands said in a press interview on Thursday, pointing to reductions in headcount and savings at the group’s factories in Germany.
The company has reduced costs at its Wolfsburg, Emden and Zwickau plants by 30% on average, the brand’s chief executive Thomas Schaefer told Auto Motor Sport magazine.
Additionally, around 25,000 workers signed partial retirement or layoff agreementshe added.
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‘We still have a way to go, but together we want to prove that it is possible to develop and build competitive cars in Germany,’ said Schaefer.
In December 2024, Volkswagen reached a deal with unions to drastically restructure its operations in Germany, including cutting 35,000 jobs by 2030, as it faces stiff competition from cheaper Chinese brands and navigates a slower-than-expected transition to electric vehicles.
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On Tuesday, the European Commission dropped its strict cap on new combustion engine cars from 2035, giving in to calls from Volkswagen and other automakers for greater flexibility.
Schaefer ruled out the possibility of offering combustion engines in the major brands’ new family of small cars, the first model of which – the ID.Polo – will be launched next year at a starting price of around 25,000 euros.
This would not make sense due to emissions regulations and would be very expensive for consumers, according to the executive.
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‘The future in this segment is electric,’ he said.
(Reporting by Rachel More and Christina Amann)
