Volkswagen Group is preparing an expanded cost-reduction program aimed at saving €60 billion by the end of the decade, according to a report citing sources within the company.

The German automotive conglomerate, which includes Volkswagen, Audi, Lamborghini, Seat, Skoda and Porsche, is seeking to strengthen its financial position following several years of operational and market pressures.

The planned savings are intended to address declining vehicle sales in China, the impact of tariffs imposed by U.S. President Donald Trump on cars imported into the United States, and growing competition from lower-priced Chinese manufacturers in both Europe and other global markets.

The report indicated that factory closures and additional workforce reductions have not been ruled out, beyond the previously announced plan to cut 35,000 jobs worldwide under an earlier restructuring initiative.

Volkswagen said in response that no final decisions have been taken regarding further measures.

The company stated that the effects of its current efficiency program have not yet been fully realized and that existing steps have helped mitigate geopolitical challenges, including U.S. tariffs, while keeping the group operationally aligned with its targets.

Chief Executive Oliver Blume is expected to present an interim update on the progress of the restructuring program on March 10 as part of the group’s annual results press conference.

If the reported savings and performance improvements are not deemed sufficient, additional measures could be introduced in the upcoming fiscal year.

The Volkswagen workers’ council did not express concern following the reports.

Daniela Cavallo, head of the council, said the group remains in a difficult position but indicated that plant closures and compulsory layoffs beyond voluntary departure programs are not currently under discussion.

Over the past five years, a period during which Volkswagen faced criticism for lagging in the electric vehicle transition and managing the financial consequences of the diesel emissions scandal, the company’s share price has fallen by 40 percent.

Since the beginning of the current year, the stock has declined by approximately 3.5 percent, reflecting continued investor caution amid restructuring efforts and competitive pressures.