VW identifies half of planned 5b euro cost cuts
[BERLIN] Volkswagen has identified cost cuts worth about half of the planned 5 billion-euro (S$7.38 billion) target at its core autos division, Chief Executive Martin Winterkorn said.
Steps including ceasing unprofitable models and reducing expensive vehicle equipment may improve results at the troubled passenger-car brand by "well over 1 billion" euros this year, Mr Winterkorn said on Thursday at VW's annual press conference.
It's the first time VW has given numerical evidence of how its cost-cut programme, announced last July, is progressing.
Earnings at VW's largest division by unit sales and revenue plunged 14 per cent last year to 2.48 billion euros, with the brand's operating profit margin dropping to 2.5 per cent from 2.9 per cent a year earlier, VW said.
It has a target of at least 6 per cent.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Tesla to cut 400 jobs in Germany via voluntary programme
GE Aerospace raises earnings goal on strong engine sales
UPS profit beats estimates as cost cuts offset weak delivery demand
General Motors beats quarterly results targets, raises forecast
‘Heavy congestion’ in South-east Asia transhipment ports prompts feeder operators to levy surcharge
Renault Q1 sales rise 1.8%, helped by financing business