Volkswagen aims to cut costs by 20% by 2028 to stay competitive against rising Chinese carmakers.
Reports say plant closures are being considered as part of the plan.
Chief executive Oliver Blume and finance chief Arno Antlitz presented the programme to senior managers.
The goal is to secure sustainable profits despite high costs, weak sales and growing automation.
The group already announced 35,000 job cuts by 2030 to save €10bn.
It says earlier measures have produced savings in the double-digit billions and helped offset geopolitical pressures such as US tariffs.
New data shows the EU trade deficit with China rose to €359.3bn in 2025.
German carmakers remain deeply tied to the Chinese market, increasing pressure for change.
Details on where savings will be made are still unclear, but the overhaul marks another major shift for Germany’s biggest carmaker.
