December 5, 2018 / 6:16 PM / in 9 days

Volkswagen brand seeks 6-billion-euro cost, efficiency gains by 2023: Handelsblatt

Workers clean the facade of a car showroom under a Volkswagen logo on the Chinese National Day in Beijing, China October 1, 2018. Picture taken October 1, 2018. REUTERS/Stringer

FRANKFURT (Reuters) - Volkswagen’s (VOWG_p.DE) core brand will seek cost and efficiency gains of almost 6 billion euros ($6.8 bln) in an effort to raise the VW brand’s operating margin to 6 percent by 2023, German daily Handelsblatt said, citing company sources.

Volkswagen has said it seeks to achieve an operating return on sales of at least 6 percent by 2025.

Around 3 billion euros in cost and efficiency gains will come from better pricing of passenger cars and a push to sell higher-margin models, while another 3 billion euros in savings comes from reducing the complexity of the cars on offer, and a cut in administrative costs, a source close to the company told Reuters.

($1 = 0.8811 euros)

Reporting by Edward Taylor; Editing by Susan Fenton

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