Volkswagen shows improved sales but cost cutting still planned

Volkswagen shows improved sales but cost cutting still planned

Volkswagen AG is the largest European automaker but has found it tough to survive in the today’s competitive world market. The company has planned massive restructuring steps to get back on track with decent profitability and global expansion.

The company has shown some improvement in vehicle sales in the first two months of the current year. The sale has improved by around 15 percent for the company with improved demand for models like Passat sedan and Audi Q7.

However, Volkswagen still has plans to cut costs massively in the coming years to stay competitive in the market, which is being dominated by Japanese and South Korean players. Volkswagen also has plans to bring to market 28 all-new or revised models in the next two years to win back market share from BMW and GM.

The company also has plans to cut back as many as 20,000 jobs in western Germany.