Published by Global Banking & Finance Review®
Posted on February 16, 2026
1 min readLast updated: February 16, 2026
Add as preferred source on GoogleVolkswagen plans a 20% cost reduction by 2028, addressing challenges like China slump and U.S. tariffs. Plant closures are possible.
Feb 16 (Reuters) - Volkswagen plans to cut costs by 20% across all brands by the end of 2028, Manager Magazin reported on Monday.
According to information obtained by the magazine, CEO Oliver Blume and finance chief Arno Antlitz have presented a "massive" savings plan at a closed-door meeting with the company's top executives in Berlin in mid-January.
The group's cost-cutting initiative is aimed at ensuring returns go back to a sustainable level amid a slump in China, U.S. tariffs and a competitive environment, the magazine said.
Where exactly the savings are to be made and where cooperation between the brands is to be improved remained unclear at the meeting, the magazine said, but plant closures could also be on the table.
VW did not immediately reply to an emailed request for comment.
(Writing by Linda Pasquini, editing by Kirsti Knolle)
A cost-cutting strategy is a plan implemented by a company to reduce its expenses and improve profitability. This can involve reducing operational costs, streamlining processes, or eliminating unnecessary expenditures.
Plant closures refer to the shutting down of manufacturing facilities, which can occur due to various reasons such as financial difficulties, restructuring, or shifts in production strategy.
Corporate strategy refers to the overall plan and direction a company takes to achieve its goals and objectives. It encompasses decisions about resource allocation, business development, and competitive positioning.
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