Volkswagen aims to cut costs to fund future expansion

Volkswagen will review costs at all levels to make sure its car production operations remains profitable. This move, says CEO Martin Winkertorn, is with the aim of funding its global expansion plans. 

A report from ET suggests that VW, currently Europe’s largest carmaker, has to also make sure that its profits are in line with German automaker’s expansion plans. It is currently aiming to sell 10 million vehicles by the end of the year, a full four years ahead of the target it had set. The company is expected to review its product line up and drop unprofitable models and add on ones that are expected to give it volumes.   

Looking at his statement and the fact that Mahesh Kodumudi, president of VW India, has announced that they will be investing Rs 1,500 crore in India, means that the German automaker sees huge potential  both in terms of manufacturing and sales. However, India has been a bit of tough nut to crack for VW  and it is now believed that they will have to develop India specific strategies to gain volume in the market.