VOLKSWAGEN TO CUT 30,000 JOBS AT THE CORE VW BRAND
Volkswagen (VOWG_p.DE) and its labor unions agreed to cut 30,000 jobs at the core VW brand in exchange for a commitment to avoid forced redundancies in Germany until 2025, a compromise which leaves the carmaker's profitability still lagging rivals. The turnaround plan announced on Friday will lead to 3.7 billion euros ($3.9 billion) in annual savings by 2020 and lift the Volkswagen (VW) brand's operating margin to 4 percent that year, from an expected 2 percent in 2016. That target still remains below rival European carmakers such as Renault (RENA.PA) and Peugeot Citroen (PEUP.PA), which is targeting an operating margin of 6 percent in 2021.