VW seeks $4bn in cutbacks

Volkswagen is aiming for more than $4bn in cutbacks from its core brand by 2021.

Europe’s biggest carmaker is seeking these savings to support its shift to electric cars and self-driving vehicles, while still facing billions of euros in costs from its emissions scandal.

According to Reuters, about €3bn of the cutbacks would affect operations in Germany where VW is based and has some of its biggest plants.

The cuts would help VW to lift the operating margin at its troubled core brand from two per cent to four per cent by 2020. However, that’s still less than a previous six per cent target and below profitability benchmarks at rivals Renault, Peugeot, Ford and General Motors.