Volkswagen aims to cut costs by 20% by 2028 in a major restructuring drive.
Reports say plant closures are possible as the group seeks stable profits.
Chief executive Oliver Blume and finance chief Arno Antlitz outlined the plan to senior managers.
Falling sales, high expenses and rising Chinese competition are driving the changes.
Automation is also reshaping Germany’s car industry.
An earlier overhaul already included 35,000 job cuts by 2030 to save €10bn.
The company says it has achieved savings in the double-digit billion-euro range so far.
EU data shows the trade deficit with China climbed to €359bn in 2025.
German carmakers remain deeply linked to the Chinese market through joint ventures.
Volkswagen recently secured tariff relief for the China-built Cupra Tavascan by agreeing to minimum prices.
Further details on new cuts will come with results on 10 March.
