Volkswagen is preparing a major restructuring aimed at cutting costs by 20% by 2028.
Reports say plant closures have not been ruled out.
Chief executive Oliver Blume and finance chief Arno Antlitz presented the plan to senior managers.
The goal is to secure stable profits despite falling sales, high expenses and growing pressure from Chinese carmakers.
The group had already announced job cuts of 35,000 by 2030 as part of a €10bn savings drive.
It says earlier measures have produced savings in the double-digit billions and helped offset tariffs and other geopolitical risks.
At the same time, the EU trade deficit with China rose to €359.3bn in 2025.
German manufacturers remain deeply dependent on the Chinese market through joint ventures and local production.
Further details on where the new savings will come from are expected with the company’s results in March.
