BERLIN – Volkswagen Group’s supervisory board will meet on Tuesday to discuss a planned savings program ahead of its capital markets day on June 21, two sources close to the company said.
The board will discuss cost-cutting measures amounting to at least 3 billion euros ($3.22 billion) across brands including VW, Seat, Skoda and Cupra, said one source.
Germany daily Handelsblatt, which first reported on the savings program, reported that CEO Oliver Blume wants to curb duplicate development work and to better use German plants, particularly at Audi and VW.
“The focus of the Capital Markets Day is on the power of the brands and the Group management model,” a VW spokesperson said in an emailed statement, declining to comment in further detail.
VW Group finance chief Arno Antlitz told Reuters in May that investors can expect an update at the June capital markets day on the company’s financial targets and capital allocation plans.
Core brand chief Thomas Schaefer said in an internal memo in May that the brand was targeting a 6.5 percent return on sales, compared to 3 percent achieved in the first quarter of this year.
“Pressure is mounting. The Volkswagen brand must act,” he wrote at the time.
