The Volkswagen brand plans to scale back the number of trim levels and variants it offers to help save money.
This move comes in the wake of the ongoing diesel emissions scandal which has already cost Volkswagen roughly 8.7 billion euros.
“We from the works council have long flagged the huge range of model variants and different components,” Bernd Osterloh, a supervisory board member told Bloomberg. “That brings enormous complexity and adds to costs, for example, for logistics. We can take out costs there on a large scale and don’t have to talk about job cuts.” No details were given on which models or trim levels would be cut.
By scaling back, the VW brand hopes to save roughly 1.9 billion euros, while the company as a whole is targeting a 5 billion euro savings thanks to efficiency gains. Initially, Volkswagen announced that it had set aside 6.5 billion euros to deal with the scandal, but that has already proven to be a conservative estimate.
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