Volkswagen AG will reduce costs by 20% across all its brands by 2028, as part of a savings plan to face competition and economic challenges.

Volkswagen AG, the largest European car manufacturer, has announced its intention to reduce costs by 20% by the end of 2028, according to Manager Magazin. CEO Oliver Blume and CFO Arno Antlitz presented a savings plan at a recent meeting with company leaders. This reduction is necessary to ensure the company's sustainability in the face of competition from China and U.S. tariffs.

Specific details about the planned savings are unclear, but possible factory closures are being considered. Volkswagen previously announced that it would reduce production costs by up to one billion euros and restructure management to streamline operations. The company also reported a decline in global vehicle sales in 2024, with a significant drop in the markets of China and North America, in contrast to the increase in sales in Europe and South America.