Volkswagen considering more cost cuts to cope with downturn

[BERLIN] Volkswagen is considering more cost cuts to help cope with the economic impact of the coronavirus pandemic, a spokesperson for the German automaker said on Saturday.

The issue was recently discussed at an internal event, the spokesperson said, when asked about a report in industry magazine Automobilwoche.

"There were general deliberations about what further cost measures could be taken to respond to the pandemic," the spokesperson told Reuters. "There are no concrete decisions yet."

Automobilwoche quoted Volkswagen chief executive officer Herbert Diess as telling top managers at a meeting on Thursday: "We must significantly cut R&D expenditure, investments and fixed costs compared with the previous planning."

The group's net liquidity would "continue to decline at least until July due to weak demand", the magazine, citing participants at the event, quoted Mr Diess as saying, adding that not all group brands would achieve a positive result in 2020.

This meant the main VW passenger car brand must reduce its so-called material overheads by 20 per cent, the magazine said.

REUTERS