Volkswagen Group Aims to Slash Costs by €60 Billion by 2028

Volkswagen Group is planning a new round of "large-scale" cost-cutting measures, aiming to reduce spending across its brands by up to 20% by 2028, resulting in cumulative savings of approximately €60 billion. Despite having already achieved billions in savings through previous initiatives such as layoffs, the company still needs to further reduce expenses due to a 36% decline in sales in China over the past six years, tariff pressures in the U.S., and intensifying global competition. German media reports indicate that executives have not ruled out closing additional plants—following the shutdown of the Dresden "Transparent Factory" late last year, it may not be the last. Additionally, Volkswagen plans to launch several affordable electric vehicles, including the €25,000 ID. Polo this year and a €20,000 entry-level EV in 2027, to accelerate its electric transition. Full details of the plan will be unveiled on March 10 alongside the company’s annual financial report.