September 27, 2018 / 1:10 PM / 7 months ago

VW brand aims for 2.6 billion euros in savings on 'leaner' production

HAMBURG (Reuters) - German carmaker Volkswagen’s (VOWG_p.DE) namesake brand aims to increase its efficiency and sees potential savings in manufacturing totaling 2.6 billion euros ($3.04 billion) through 2025, production manager Andreas Tostmann said on Thursday.

“The plants must become faster, leaner and more efficient,” he added.

Tostmann said processes would be streamlined to cut the amount of money that is spent per car in production.

VW also plans to reduce investments by 1.5 billion euros with measures like reusing existing machinery and standardizing production, he added.

Herbert Diess, CEO of both Volkswagen group and the VW brand, earlier this year revealed plans to increase worldwide productivity by 30 percent by 2025.

In this time frame, Diess plans to lift margins to 6 percent from currently 5 percent.

($1 = 0.8548 euros)

Reporting by Jan Schwartz; writing by Thomas Seythal; editing by Maria Sheahan

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