Volkswagen has confirmed it is instigating sweeping cost-cutting measures aimed at bringing global operating savings of up to €4 billion (£3.5bn) in the coming year.
The company says these measures will significantly improve its competitiveness as it pivots from a line-up consisting mostly of internal-combustion-engine models to one predominately of electric models.
By 2026, the savings are expected to reach up to €10bn (£8.6bn) annually, with the German car maker targeting a long-term return on investment of 6.5%.
The measures apply specifically to the Volkswagen brand, but they are also expected to help bolster the efficiency of the Volkswagen Group as a whole, as other subsidiaries tap into savings, both on an administrative and production level.
