Shulou(Shulou.com)12/24 Report--

CTOnews.com, December 9, after the news came out in November, Volkswagen recently officially launched a "cost reduction and efficiency" program, which plans to cut costs by 10 billion euros in 2026 by reducing executive costs.

Volkswagen, which includes brand and group employees, has nearly 40,000 executives, and the core of the strategy is to reduce executive costs by 20%, the report said.

CTOnews.com learned from the report that Volkswagen adopts a more gentle and humane way to promote cost reduction, respect employees, and minimize the impact on employees, mainly by means of early retirement, and will not use layoffs easily.

Volkswagen also plans to shorten the product cycle from the existing 50 months to 36 months, a change that means consumers can expect to see new and modified models more frequently, thus keeping the brand fresh and competitive in a fast-growing market.

Another major development is the cancellation of the planned $862 million R & D base in Wolfsburg, Germany. The decision reflects a shift in priorities, with Volkswagen focusing more on immediate operational efficiency than on long-term capital projects.

The changes come amid a marked decline in Volkswagen's production, which once produced an average of 780000 cars a year at the company's Wolfsburg plant, and now aims to produce 500000 this year, in stark contrast to past performance.

Volkswagen brand owner Thomas Schaefer (Thomas Schaefer) said succinctly:

In the future, we need to reduce the number of employees in many areas of Volkswagen. The statement summed up the essence of Volkswagen's new direction-to operate more streamlined and more efficiently, ready to meet the challenges of the modern car industry, especially electric vehicles.

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