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VW to lower investment, R&D costs through 2020

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Reuters WOLFSBURG, Germany
Last Updated : Nov 18 2016 | 8:43 PM IST

WOLFSBURG, Germany (Reuters) - Volkswagen said it will lower investment and development costs in coming years as the automotive group embarks on an efficiency drive to fund a strategic shift to zero-emission technology.

The investment ratio in VW's automotive business will decline to 6 percent by 2020 from 6.9 percent last year, VW said on Friday, adding development costs will be cut to the same level.

VW earlier on Friday announced a long-awaited turnaround plan for its core brand which foresees 30,000 job cuts globally at the division while targeting 3.7 billion euros ($3.93 billion) in annual cost savings from 2020.

($1 = 0.9418 euros)

(Reporting by Andreas Cremer; Editing by Edward Taylor)

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First Published: Nov 18 2016 | 8:32 PM IST

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