Audi’s parent company Volkswagen to reduce supplier costs by €3 billion?

German media is reporting Volkswagen has plans to implement a massive cut as far as supplier costs are concerned. This decision has been taken because the ongoing dieselgate saga is turning out to be a real nightmare for the Volkswagen Group as it seems the €6.5 billion allocated initially won’t be enough to cover all the expenses. For this reason, VW is looking for ways to make cuts from various areas to get the money necessary to handle this major issue.

According to German newspaper Handelsblatt, the company has decided to cut supplier costs by no less than €3 billion which is extremely worrying because this will have a direct impact on the quality of the cars from all marques of the brand, including Audi. While we understand the need to gain access to more funds, it’s still unfair that VAG’s suppliers are being directly affected by an issue that isn’t really their fault as they had nothing to do with the company’s decision to install an illegal software on around 11 million cars fitted with EA189 diesel engines.

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It remains to be seen whether this report will turn out to be true and we hope it won’t since this would greatly affect the fit and finish of the cars.

Adrian Padeanu

Long-time fan of the fabled Four Rings.