Volkswagen: More cost-saving measures

The Detroit Free Press is writing that Volkswagen is looking at more cost-saving measures.

German automaker Volkswagen AG said it is considering selling or spinning off its Europcar car-rental unit as well as a consulting division.

It didn't say how much it could raise from a sale of Paris-based Europcar or auto industry consulting firm Gedas, which is based in Berlin. But it said the decision would have no impact on its earnings outlook for 2005.

Wolfsburg-based VW is reviewing its businesses in a drive to tighten its focus, identify cost savings and revive its sagging earnings. Earlier this month, it announced plans to cut its work force in Germany, complaining that its factories have several thousand surplus employees, despite rising demand for its cars.

GermanCarBlog, Volkswagen

Source: Detroit Free Press

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