Tough times at Volkswagen mean that the company has not only had to stretch its existing resources, but seek new ways to settle its financial woes in the wake of its global diesel scandal.

Recently, Bloomberg reported that the Volkswagen Group has identified that it could save up to 1.9 billion euros (RM8.5 billion) purely by limiting the number of variants and trim options it has for its Volkswagen-branded models.

Bernd Osterloh, a chief labour representative at Volkswagen told journalists at a recent briefing event held at the company’s headquarters in Wolfsburg that, “we from the works council have long flagged the huge range of model variants and different components.”

“That (range of variants) brings enormous complexity and adds to costs, for example, for logistics. We can take out costs there on a large scale and don’t have to talk about job cuts,” continued Osterloh.


It was also reported that senior executives within the company would have their bonuses reduced, in an attempt to cover the estimated 8.7 billion euros (RM39 billion) in damages faced by the Volkswagen Group for its diesel scandal. It has been reported that these measures will help the Group collectively save up to five billion euros (RM22.5 billion).

Volkswagen currently faces a multi-pronged diesel dilemma that spans over more than 11 million vehicles from around the globe. Various emissions-manipulating devices and softwares have been uncovered in vehicles equipped with 1.2, 1.6 and 2.0 litre EA189 diesel four-pot engines. More recently, the 3.0 litre V6 TDI has also been flagged for emissions offences in the US.

Inevitably, the diesel scandal has sparked a drop in customer demand for Volkswagen vehicles worldwide. In response, Volkswagen’s Osterloh has said that the manufacturer will be reducing its production output to avoid oversupplying a market that has limited demand for its vehicles.