Volkswagen CEO Oliver Blume announced on Sunday that he intends to avoid plant closures during the company’s fundamental realignment.
The automaker faces mounting pressure to reduce German expenses and counter intense competition in the Chinese market.
Blume reported a 20% improvement in German factory costs last year as evidence that closures remain unnecessary.
The strategy includes streamlining the company's model lineup to further reduce operational expenses.
Labor representatives recently blocked board-level discussions regarding the potential shutdown of four plants.