Volkswagen is Downsizing to Reduce Costs!

German automotive giant Volkswagen announced its downsizing plans to increase its competitiveness. The company, which announced that it had lost its market share in the past weeks, stated that it would reduce its prices by reducing its expenses.

Volkswagen to Save €2026 Billion by 10

Volkswagen aims to save a total of €2026 billion (₺10 billion) by 310 and thus increase its market share from 3.6% to 6.5%. The first step of the savings plan is to reduce the number of employees.

Volkswagen Cannot Resist Inflation and Energy Costs

Volkswagen, like everywhere else in the world, is struggling with inflation and energy costs in Europe. While demand for its main brand decreases in Europe, its Chinese competitors are more preferred.

VW CEO Thomas Schäfer said: “There will be fewer employees in some parts of Volkswagen. "We will give up unnecessary operations and focus on our main goals." said.

Volkswagen Restricts Production Time and Hardware Options

Volkswagen will reduce the production period from 3 years to 50 months and reduce equipment packages and option features. Additionally, an R&D project worth 800 thousand euros will also be cancelled.

Volkswagen, which produced 780 thousand cars a year in Wolfsburg before the pandemic, produced only 2023 thousand vehicles in the first 11 months of 453. It hopes to exceed 500 thousand units by the end of the year.