Volkswagen aims to cut costs by 20% by 2028 as it reshapes the business for a tougher market.
Reports say plant closures are possible, although no locations are confirmed.
Chief executive Oliver Blume and finance chief Arno Antlitz presented the savings plan to senior managers.
The company faces declining sales, high costs and growing pressure from Chinese carmakers in Europe.
An earlier restructuring already included 35,000 job cuts by 2030 and a €10bn savings target.
Volkswagen says previous measures have produced double-digit billion-euro savings and helped absorb tariff impacts.
The push comes as the EU trade deficit with China continues to widen and German manufacturers remain deeply tied to the Chinese market.
Further details will likely follow with the group’s results in March.
