Volkswagen Slashes Costs by $6.8 Billion to Fund Tesla Pursuit

Volkswagen Slashes Costs by $6.8 Billion to Fund Tesla Pursuit
A Volkswagen Concept I.D. electric car stands in the Volkswagen tent during celebrations to mark German Unity Day on October 2, 2018 in Berlin, Germany. Photo by Sean Gallup/Getty Images
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Volkswagen AG is accelerating a push to lower costs and lift profits at its biggest car brand to add financial muscle as the world’s largest automaker pursues a $50 billion technology shift to counter Tesla Inc.

To improve profitability after lagging behind mass-market peers for years, the VW nameplate will trim management ranks, slash factory costs and eliminate a quarter of engine and gearbox variants in Europe.