According to Manager Magazin, CEO Oliver Blume and finance Chief Arno Antlitz presented a “massive” savings strategy at a closed-door meeting with senior executives in Berlin in mid-January.

A company spokesperson confirmed that Volkswagen had already started a cost-saving program three years ago. Since then, the company says it has saved double-digit billions of euros. These savings helped offset challenges such as U.S. tariffs and geopolitical tensions.

However, details about where exactly further savings will come from remain unclear. The report suggested that plant closures could even be considered, though nothing has been officially confirmed.

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Volkswagen’s works council Chief Daniela Cavallo, responded by highlighting a 2024 agreement with the company. She said the deal ensures competitiveness while protecting workers. “With this agreement, we have expressly ruled out plant closures and layoffs for operational reasons,” she stated.

Europe’s largest carmaker is already planning to cut 35,000 jobs in Germany by 2030. In January, its core brand announced plans to reduce management roles and streamline production to save 1 billion euros, equal to about $1.2 billion, over the same period.

Blume is expected to provide more details during Volkswagen’s annual results press conference on March 10.

German carmakers are facing intense pressure in China, where they are competing in a growing price war with local brands. At the same time, investments in software and the parallel development of combustion engines and electric vehicles are keeping costs high.

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Meanwhile, Mercedes-Benz recently warned that profits in its car division could drop further this year and promised “relentless cost discipline”.

Volkswagen, based in Wolfsburg, said it remains committed to producing more efficient and low-emission vehicles in the long term despite the financial pressure.