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By Kim Richters
Volkswagen AG's (VOW.XE) namesake passenger car brand said Thursday that it is on track for more cost-effective vehicle production as it continues to pursue savings through efficiency and personnel measures.
The car maker said that its overall plant productivity will have increased by more than 6% in 2019, saving the company around 500 million euros ($548.9 million). It previously expected an improvement of 5%.
For "the first time since 2013, we lowered the costs per vehicle in production," said Andreas Tostmann, Volkswagen brand board member for production and logistics.
Volkswagen's costs for its production plants are EUR10 billion a year and it plans to save EUR2 billion in this area in the next four years through measures such as reducing personnel and overhead costs.
The Volkswagen brand, which makes vehicles such as the Golf and Passat, is part of the broader Volkswagen group, which is in the midst of an overhaul that includes slashing thousands of jobs worldwide.
The car maker aims to increase productivity at its sites globally by 30% by 2025, a plan announced in September last year.
Additionally, the Volkswagen brand said that CO2 emissions at its plants per vehicle produced will be reduced by 22% between 2015 and 2019. It aims to cut such emissions by 50% by 2025.
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(END) Dow Jones Newswires
September 26, 2019 06:14 ET (10:14 GMT)
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