Volkswagen AG (VOW.XE) on Friday said that its Volkswagen brand has saved 1.9 billion euros ($2.24 billion) through efficiency gains since signing an agreement with workers a year ago.
Volkswagen's management board and general works council said the savings correspond to 96% of the targets set for 2017, while the brand has also reached 94% of its planned early-retirement targets for 2020.
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The agreement--known as the pact for the future--is expected to increase the brand's earnings by EUR3.7 billion a year from 2020 through sweeping operational changes, including the reduction of 23,000 existing jobs in Germany and the creation of 9,000 new jobs.
"We have made considerable progress with the pact for the future but we still have a demanding route ahead of us," said Volkswagen brand Chief Executive Herbert Diess.
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(END) Dow Jones Newswires
November 17, 2017 04:53 ET (09:53 GMT)