VW looks to lower annual savings by €5B

|By:, SA News Editor

Volkswagen’s (OTCQX:VLKAY) chief exec has demanded senior managers generate €5B in annual savings by 2017 as the company faces falling sales, weak growth and high development costs.

“This is urgent because today the profitability of our brand is still too low,” warns CEO Martin Winterkorn. “That is why we must now take action that is clear, effective and sometimes painful.”

Sales have been declining for the automaker in major markets such as the U.S., Brazil, Russia and India, and have been simultaneously hit by the impact of the strong euro.