Volkswagen CEO Oliver Blume relies on a comprehensive savings program in view of declining margins and structural problems at the core brand VW. Due to high labor costs and weak market demand in Europe and China, costs in Germany are to be "massively" reduced, Blume explained in an interview with Bild am Sonntag. A particular challenge: labor costs at German locations are often more than twice as high as at other European locations.

Here is the translation of the heading into English:
"In addition to the structure of labor costs, development and sales costs also require significant cuts. Although the company recorded a slight increase in sales and positive feedback on new models, the operating result fell by more than 20 percent in the first nine months, burdened by high costs.

The company has already set aside provisions amounting to around 900 million euros to finance the planned restructuring. The cost-saving plan will be achieved through a variety of measures, according to the company: A hiring freeze and the suspension of replacements when employees retire are among the first steps. In addition, early retirement and phased retirement programs for older employees, as well as severance packages and reduced bonus payments, including for management, are planned.

**Personnel Director Gunnar Kilian Described the Planned Measures as a "Historic Turning Point" for the Company**