Volkswagen will close no factories in cost-cutting drive

08 Feb, 2015

German carmaker Volkswagen has no plans to close any factories as part of its cost-cutting plan, chief executive Martin Winterkorn said on Saturday. Europe's largest automaker announced plans in July to cut 5 billion euros of costs at its core VW division by 2017 to close a profitability gap with rivals such as Toyota. "We will not close any factories," Winterkorn was quoted as saying in the summary of an article to appear in German magazine Automobilwoche.
"Similarly demanding goals for the other brands are coming along," he added. The plan sparked fears among some workers that VW's production plants could bear the brunt of the efficiency plan.

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