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VW's Winterkorn tells 20,000 staffers of big cost-cutting plans

During a gathering of 20,000 Volkswagen Group employees at company headquarters in Wolfsburg, Germany on Wednesday, CEO Martin Winterkorn dropped a bombshell. The boss stated that the automaker isn't operating efficiently enough and admitted the company needs to radically start cutting back to raise its profit margins. To right the ship, Winterkorn has proposed killing off less profitable models and spending less on research and development.
According to Reuters, Winterkorn wants to raise the VW brand's profit margin from about 2.9 percent in 2013 to a target of 6 percent. To make that possible, his plan amounts to increasing cost cutting until Volkswagen reaches about 5 billion euros ($6.7 billion) per year to get things back in order. "Over the short-term, we urgently need more efficiency and higher profit," the CEO said during his speech, according to Reuters.
However, Winterkorn can't make these decisions unilaterally. Volkswagen's works council also has a seat on the supervisory board to represent laborers, and it isn't likely to take the proposed cuts sitting down.

2023 Chicago Auto Show Mega Photo Gallery: See all the new cars from the show

The 2023 Chicago Auto Show played host to a number of reveals this year, and we were there to capture all of them. In traditional auto show fashion, that means you’re getting a mega gallery of galleries to flip through and see all the vehicles on the show floor. Our EditorsÂ’ Picks from the show are already out — spoiler alert, the 2024 Toyota Grand Highlander took home the prize. That said, there were other important reveals like the 2024 Volkswagen Atlas and Atlas Cross Sport and the 2024 Subaru Crosstrek. We also learned some interesting tidbits, such as the fact that VW is considering a pickup, and Jeep owners really are plugging in. To see the photos, scroll on down and start flipping through those galleries.   2024 Toyota Grand Highlander 2024 Toyota Grand Highlander View 7 Photos 2024 Volkswagen Atlas 2024 Volkswagen Atlas View 14 Photos 2024 Volkswagen Atlas Cross Sport 2024 Volkswagen Atlas Cross Sport View 7 Photos 2024 Ford Mustang Dark Horse with its carbon fiber wheels 2024 Ford Mustang Dark Horse with carbon fiber wheels View 7 Photos 2024 Chevrolet Corvette E-Ray 2024 Chevrolet Corvette E-Ray View 10 Photos Jeep Wrangler Anniversary Editions Jeep Wrangler Anniversary Editions View 3 Photos 2023 BMW XM 2023 BMW XM View 6 Photos Ram Revolution Concept Ram Revolution Concept View 6 Photos NASCAR Chicago Street Race Pace Car — Toyota Camry NASCAR Chicago Street Race Pace Car ? Toyota Camry View 4 Photos Everything else at the 2023 Chicago Auto Show Lamborghini Countach LPI 800-4 View 12 Photos Related video: Chicago Auto Show BMW Buick Chevrolet Ford GM GMC Hummer Jeep Lamborghini RAM Toyota Volkswagen Truck Coupe Crossover SUV Concept Cars Electric Hybrid Luxury Off-Road Vehicles Performance Supercars Sedan

Lamborghini and Bentley may hold off on SUVs so VW can conserve cash

After surveying the European economic scene, Volkswagen may have decided now is not the time to launch utility vehicles with Bentley and Lamborghini badges. Bentley officials say they will continue to push for support for the EXP 9 F and Lamborghini CEO Stephan Winkelman has said planning for the Urus will continue until VW tells it to stop.
That decision could come on November 23, when VW's board will vote on the company's budget for equipment, factories and vehicles. With VW's sales slowing and the Euro economy slumping further, some industry watchers say the company is more likely to build its cash reserves than to introduce super-expensive luxury SUVs or crossovers.
"Such vehicles are anything but obligatory during a crisis," says Frankfurt-based Equinet AG analyst Tim Schuldt in a new Automotive News Europe story. "Delaying their launch would be no drama but help save costs."