Volkswagen Chief Executive Oliver Blume reaffirmed on Thursday that Europe’s largest carmaker will continue cutting costs as it works to stay competitive during a challenging period for the global auto industry.
During the company’s two-day management meeting in Berlin, Blume outlined leadership, strategic focus, and financial discipline as the group’s main priorities for the year ahead, according to a company spokesperson.
Blume said Volkswagen must consistently reduce its cost base to protect long-term competitiveness. He added that the company’s broad portfolio of brands and products provides a strong foundation for future growth.
Chief Financial Officer Arno Antlitz emphasized that the German automaker needs to generate higher revenue while using fewer resources. He said stricter cost controls and tighter investment discipline will be essential moving forward.
Antlitz also highlighted plans to improve electric vehicle profitability, significantly lower fixed and manufacturing costs, and concentrate investment on key future technologies. In addition, he stressed the importance of increasing group-wide synergies, reducing complexity, and strengthening Volkswagen’s market position in the United States and other regions outside Europe.
In December 2024, Volkswagen reached a deal with labor unions to overhaul its German operations. The agreement includes plans to cut around 35,000 jobs by 2030, as the company faces rising competition from lower-cost Chinese manufacturers and a slower-than-expected transition to electric vehicles.
Antlitz added that Volkswagen’s overhead expenses declined in the current year compared with the previous year, marking the first such drop in a long period.
