FRANKFURT (Reuters) - Germany’s Duerr has no signs that Volkswagen, one of its key customers, will cut back orders as it struggles to contain the costs of the emissions scandal, its chief executive said.
VW aims to cut investment plans at its core brand by 1 billion euros a year and accelerate efforts to increase planned cost savings at the division to help cope with the scandal which analysts have said could cost VW up to 35 billion euros.
“So far we have been told that it (the emissions scandal) will have no consequences for our business because VW wants to continue to implement its strategy,” Duerr Chief Executive Ralf Dieter said in an interview.
VW contributes about 10 percent to Duerr’s sales.
Europe’s largest automaker has declined comment on a report last month by Germany’s Handelsblatt that it wants to extract 3 billion euros (2.13 billion pounds) in price cuts from its suppliers to help mitigate the cost burden.
Separately, Duerr remains upbeat on business prospects in China despite the weakening of the world’s second largest economy, after its new orders in the country eclipsed year-ago levels even when adjusted for Homag’s contribution.
“2015 will be a very good year for us in China and we are also confident about 2016,” Dieter said, noting Duerr is in talks about delivering new paint shops to Chinese customers.
Based near Stuttgart, Duerr remains open to acquisitions but has no set list of takeover targets.
“We will be ready again to take action next year or the year after should something come up,” the CEO said, without being more specific.
Reporting by Ilona Wissenbach. Writing by Andreas Cremer.; Editing by Kirsti Knolle