September 27, 2018 / 1:16 PM / 8 months ago

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

FILE PHOTO: Herbert Diess, Volkswagen's new CEO, speaks next to a Volkswagen I.D. concept car at a media event ahead of the Beijing Auto Show in Beijing, China April 24, 2018. REUTERS/Jason Lee/File Photo

HAMBURG (Reuters) - German carmaker Volkswagen’s (VOWG_p.DE) namesake brand aims to increase its efficiency and sees potential savings in manufacturing totalling 2.6 billion euros (2.31 billion pounds) 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 standardising 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.

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

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