Volkswagen is to cut production costs of the next Golf by about 1 000 euros per vehicle as part of a cost-saving programme, reports the Wall Street Journal.
The German carmaker is due to unveil the sixth-generation Golf at the Paris Motor Show in September. VW has struggled to make money with the outgoing model, which has been in production since 2003 but has been profitable for only the past two years.
According to the Wall Street Journal, VW will keep the current model's platform for the new Golf to achieve the cost-cutting.
The cuts are part of a broad effort to reduce costs and improve profit through simplification. The Wall Street Journal said that VW is eager to reach a return on investment of more than 10% in its auto division in the medium term, from 9.5% last year.