Headlines
VW management to continue cost cutting
Published by Global Banking and Finance Review
Posted on December 18, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 18, 2025
2 min readLast updated: January 20, 2026
Volkswagen CEO Oliver Blume commits to cost cutting to maintain competitiveness. The strategy includes job cuts and investment in electric vehicles.
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)
Cost cutting refers to the measures taken by a company to reduce its expenses and improve profitability. This can involve reducing overhead costs, streamlining operations, and optimizing resource allocation.
Electric vehicles (EVs) are automobiles that are powered by electric motors instead of internal combustion engines. They are considered more environmentally friendly due to lower emissions compared to traditional vehicles.
Fixed costs are business expenses that do not change with the level of production or sales. Examples include rent, salaries, and insurance, which must be paid regardless of the company's output.
Group synergies refer to the benefits that arise when companies within a group collaborate or integrate their operations. This can lead to cost savings, increased efficiency, and enhanced market competitiveness.
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