Newscasts - Volkswagen plans to cut costs by 20% by end 2028: media report

Porsche Automobil Holding SE

16/02/2026 15:58

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Source: 'Reuters - Business videos'

Description: Volkswagen plans to cut costs by 20% across all brands by the end of 2028, Manager Magazin reported on Monday (February 18), as the German automaker looks to shore up its finances to counter the impact of higher costs, a tough Chinese market and U.S. tariffs. Francis Maguire reports.

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Video Transcript:

Volkswagen plans to cut costs by a fifth across all brands by the end of 2028. That's according to a report in Manager Magazin on Monday. The report said CEO Oliver Blume and Finance Chief Arno Antlitz presented a massive savings plan at a closed-door meeting with top executives in Berlin last month. Monday's report added it wasn't clear at the meeting where the savings are due to be made or where cooperation between the brands is to be improved, but it did say plant closures could be considered. VW's Works Council Chief Daniela Cavallo acknowledged the report and pointed to a deal struck with Volkswagen AG at the end of 2024. They agreed on measures for competitiveness and for a socially acceptable impact on the workforce. She added, "With this agreement, we have expressly ruled out plant closures and layoffs for operational reasons." The German auto giant wants to strengthen finances to deal with the impact of higher costs, a tough Chinese market, and US tariffs. Europe's largest carmaker is in the process of cutting 35,000 jobs in Germany by 2030. Its core brand announced in January it plans to reduce management positions and consolidate its production platform. It aims to save $1.2 billion by the start of the next decade.