Volkswagen Group said it will shrink the workforce at its core VW passenger cars brand by up to 7,000 staff in a bid to raise the brand's operating margin to 6 percent.
The VW brand accounts for about half of VW Group's global deliveries.
At the VW brand, executives aim to lift their profit margin to 6.0 percent by 2022, compared with 3.8 percent past year. Volkswagen's chief executive officer, Herbert Diess, explained during the recently held Capital Market's Day that building fully-cars as opposed to electric and combustion drivetrains is a much more efficient approach. Ford is also considering using VW's electric-car technology, dubbed MEB, in Europe or China, Diess said. This includes the start of the much talked-about electric offensive, as well as efficiency measures in production like reducing complexity and optimizing material costs. VW says the move will help ensure profitability as the company transitions to the electric and autonomous vehicle era.
VW signed a labor pact in 2016 to cut 30,000 jobs worldwide and generate about 3 billion euros in annual savings.
Volkswagen released full earnings today after pre-releasing earnings in February, when it said its 2018 group operating profit came in at €13.92 billion. "We won't agree to positions being subcontracted", Osterloh told Bloomberg in an e-mail statement.
At least for now, any jobs cuts will be voluntary.
Previously, the company said it would aim for 15 million. For the Audi E-Tron and the Porsche Taycan, VW's first two battery cars that are part of a 70-model onslaught until 2028, VW said it has received 20,000 reservations each-with Porsche boosting planned production because of high demand.
The first electric auto on the platform - the "ID" - will hit showrooms in 2020 and VW expects the launch edition to sell out, VW's board member for sales Juergen Stackmann said. Instead, VW will unveil the next iteration of Europe's most popular auto at some point after the IAA show in Germany as a move to give the Golf VIII the "exclusivity it deserves".
Volkswagen has set a goal to cut the Carbon dioxide footprint of its vehicle fleet by 30 percent by 2025.