VW wants to develop new electric cars ( Image credit: Reuters )

Volkswagen plans 30,000 job cuts worldwide

Volkswagen has announced plans to cut 30,000 jobs worldwide with about 23,000 of the losses borne in Germany.

VW, still dealing with the aftermath of the emissions-cheating scandal, aims to rejuvenate its core brand, and develop new electric and self-driving cars.

VW says it will create 9,000 jobs as part of investments in new products.

The cuts should bring annual savings of €3.7bn (£3.2bn; $3.92bn) by 2020. VW and unions have been hammering out a plan to revive its fortunes since June.

The car giant - which employs 610,000 people in 31 countries - wants to increase the brand's profit margin from 2% to 4% and to do this it will need to improve productivity at its German plants by 25%.

Volkswagen chief executive, Matthias Mueller, said it was "the biggest modernisation programme in the history of the group's core brand".

"The VW brand needs a real shake-up and that is exactly what the future pact has turned out to be," he added.

Costly settlement

Volkswagen has been battling a crisis caused by its attempts to dodge strict US emissions limits.

It was revealed in the US last year that VW's diesel cars were fitted with...Read more...

Source: bbc.com