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VW to Cut Costs to Produce Golf

Ambitious Targets Drive Broad Effort To Simplify Process

By

Edward Taylor

Updated June 9, 2008 12:01 a.m. ET

FRANKFURT -- Volkswagen AG plans to cut production costs of the next-generation VW Golf by about €1,000, or about $1,600, per vehicle as part of a cost-saving program at Europe's largest auto maker by sales, according to people familiar with the matter.

Volkswagen is preparing to launch the sixth generation of its best-selling Golf in the fall. The company has struggled to make money with the current model, which has been in...

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