VW CEO rules out plant closures in cost-cutting push

Volkswagen CEO Oliver Blume said he is working to avoid shutting factories as the automaker looks to squeeze out costs. He told Bild am Sonntag there are more intelligent solutions than closing plants. Blume pointed to a cost-cutting program in Germany that he said already is delivering results. Factory expenses there fell 20% last year, he said.

The Wolfsburg-based carmaker faces pressure on two fronts: high costs at home and intensifying competition in China, its biggest profit pool. Last week, VW said its multiyear restructuring had reached a new phase and that it would cut the number of models by as much as half. It did not detail other cost levers, fueling speculation about the future of several German plants.

Blume argued that VW's vehicles remain popular but that the company earns too little on them. We must continue to reduce our costs, he said. In all kinds of costs.