Volkswagen is working to cut costs and sticking with its electric vehicle prices despite reductions at some rivals, as the German automaker aims to rebuild margins after quarterly profits were hit by bad bets on raw material prices.
A programme targeting 10 billion euros ($10.6 billion) in savings at its main passenger cars brand is delayed, but some measures have already been implemented, Chief Financial Officer Arno Antlitz said on Thursday, confirming a Reuters report, reports Reuters.
“There will be communication as soon as they are ready. We shouldn’t be worried about a month or two delay,” Antlitz said of the plans.
The company, in the midst of a strategy shift to slash fixed costs and improve productivity, confirmed preliminary third-quarter results released on Friday that cut its profit margin guidance for this year, disappointing investors.
“We cannot be satisfied with our profitability, which dragged behind our ambitious targets in the third quarter,” Antlitz said in a statement.
The carmaker’s planning round, where it sets budgets for five-year spending, will conclude in mid-November but Antlitz said the company would no longer communicate results directly afterwards, instead updating shareholders at the company’s annual news conference in March.
