Volkswagen seeks 6-billion-euro cost and efficiency gains by 2023

Volkswagen’s core brand will seek cost and efficiency gains of nearly 6 billion euros ($6.8 bln) in order to raise the core brand’s operating margin to 6 percent by 2023, German daily Handelsblatt noted, mentioning company sources.

Volkswagen has stated it seeks to achieve an operating return on sales of no less than 6 percent by 2025.

About 3 billion euros in cost and efficiency gains will follow better pricing of passenger cars and a push to sell higher-margin models, while another 3 billion euros in savings comes from decreasing the complexity of the cars on offer, and a decrease in administrative costs, a source close to the company informed Reuters.