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The
Wolfsburg, Germany-based company faces pressure to cut costs at
home and increasingly intense competition in the lucrative
Chinese market, in particular.
Last week, Volkswagen said its “fundamental realignment” over
the past three years had reached its next phase, announcing
plans to streamline the model lineup by up to half.
It didn't provide specifics, and questions remain over how else
it will cut costs. There has been renewed speculation about the
future of several plants in Germany.
“There are more intelligent solutions than closing plants,” CEO
Oliver Blume told the Bild am Sonntag newspaper.
He added that a cost-cutting program in Germany already is
producing effects. “We were able to improve our factory costs in
Germany by an average 20% last year alone,” he said, describing
that as “strong progress.”
Blume argued that Volkswagen's products are very popular, but
“we just earn too little money with them. So we must continue to
reduce our costs. In all kinds of costs.”
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