Volkswagen AG, the Wolfsburg-based German multinational automotive industry tycoon that had sold the largest number of passenger cars in both 2019 and 2018 despite a cataclysmic outlook in the automaking industry, had been exploring an option to slash expenses further in order to see through the financial fallouts of the pandemic outbreak, a spokesman for the German multinational automotive industry Goliath had unveiled.
On top of that, in an interview with an auto industry magazine, Automobilwoche, published earlier on Saturday, the Volkswagen AG spokesman had also added that the blazing issue was discussed in a recent internal board meeting.
Aside from that, in a separate interview that shortly followed the reveal of Automobilwoche report, a press agency was quoted the spokesman as saying, “There were general deliberations about what further cost measures could be taken to respond to the pandemic.
There are no concrete decisions yet. ”
Volkswagen to slash R&D expenses & investments
Besides, latest remarks from the Volkswagen AG spokesman comes over the heels of an earlier comment from the German carmaker Chief Executive Herbert Diess, who according to the Automobilwoche report said to the top managers at a Thursday event that the group must significantly slash expenses on R&D (Research and Development) to battle past the pandemic’s fiscal fallout adding the group’s planned investments and fixed costs would be trimmed as well.
More importantly, the Saturday Automobilwoche report was also quoted the Group Chief Executive Diess as saying that the German multinational carmaker’s net liquidity would continue to telescope until July because of a widespread simmering in global demands, while Diess had also told to the event participants on Thursday that not all Volkswagen AG brands would be able to find their operational profits at a positive territory in 2020, suggesting the main Volkswagen’s passenger car brands would have to reduce their so-called material expenses by 20 per cent, added the Weßling-based German B2B newspaper.