Volkswagen boldly plans to save $7.3 billion a year

There are cost-saving measures, and then there’s this: Volkswagen has a plan to cut yearly expenses by $7.3 billion until 2017 in order to increase profits and remain competitive.

With “Future Tracks,” the German automaker is targeting savings by lowering purchasing expenses, reducing complexity, and cutting factory costs.

Non-profitable vehicles may be axed, too. Volkswagen currently sells 310 models worldwide, and with ever-changing consumer needs, the company says it must have the courage to make tough decisions and abandon certain projects. Convertibles are one possibility.

At the same time, Volkswagen CEO Martin Winterkorn is focusing on profitability with sales at an all-time high. His goal is to launch 100 new or redesigned vehicles through next year as part of a larger effort to dethrone Toyota as the world’s top-selling automaker by 2018.

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