Volkswagen has announced a significant cost-cutting plan that aims to reduce expenses by 20% across all its brands by the year 2028. The company's CEO, Oliver Blume, and CFO, Arno Antlitz, shared details of this new savings initiative, which comes as the automotive giant faces increasing financial pressures despite prior savings of billions of euros. The plan suggests that Volkswagen is in a challenging position that necessitates further reductions to remain competitive in the evolving automotive market.

One of the most alarming aspects of the new strategy is the potential for closing manufacturing plants, a move that is unprecedented for the company. The closure of the "Transparent Factory" following the end of the Volkswagen ID.3 production marks a significant shift, as it is the first German plant to shut down after 88 years of operation. This could indicate a significant change in Volkswagen's production strategy as they navigate the financial landscape and seek to enhance their profitability.

In addition to addressing operational costs, Volkswagen is looking to further streamline its offerings, including launching electric models priced at 25,000 euros. This strategic move is part of their broader plan to adapt to the changing consumer demand and regulatory pressures associated with climate change and emissions reduction. As Volkswagen implements these measures, the implications for its workforce and the broader automotive industry in Europe will be closely monitored.