Oliver Blume said Volkswagen is trying to avoid closing plants, arguing there are “more intelligent solutions” as the carmaker pushes deeper cost cuts.
A 20% average reduction in German factory costs last year has already shown the program is working, Blume said, but he added Volkswagen still earns too little on otherwise popular vehicles.
Last week, Volkswagen moved its three-year “fundamental realignment” into a new phase by planning to shrink its model lineup by up to half, without detailing other savings measures.
Pressure at home to lower costs and intensifying competition in China are driving the overhaul, while speculation has resurfaced over the future of several German plants.