Volkswagen seeks savings of 10 billion euros: source

By Jan Schwartz; Writing by Edward Taylor; Editing by Alexander Ratz and Kirsti Knolle

Nov 21, 2014 11:34 AM EST

Volkswagen seeks savings of 10 billion euros: source — The logo of German carmaker Volkswagen is seen at a VW dealership in Hamburg, October 28, 2013. Volkswagen is due to present company results on Wednesday.
(Photo : REUTERS/FABIAN BIMMER)

Volkswagen Group (VOWG_p.DE) is seeking cost savings of around 10 billion euros ($12.4 billion), a source told Reuters on Friday.

"For the group, efficiency measures could amount to around 10 billion euros," a Volkswagen source said on Friday.

The move underlines how Volkswagen is still seeking to glean greater efficiencies from its business, which has lagged in profitability when compared with some of its peers.

In July, Volkswagen Chief Executive Martin Winterkorn told employees he was looking for 5 billion euros worth of efficiency gains at its core passenger-car brand by 2017, to close the profit gap with rivals.

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