FRANKFURT, June 23 (Reuters) -manager Wolfgang Bernhard aims to save 7 billion euros ($8.5 billion) in costs at the VW Brand Group in the coming three to four years, Germany's Manager Magazin reported, citing VW sources.
In an advance copy of its Friday edition, the magazine said that the VW Brand Group chief expects to wring 3 billion euros from suppliers alone.
At a conference this month in Hanover, he told car parts makers that they had to cut their prices in the coming two years by a total of 10 percent, it reported.
A spokesman for Europe's largest carmaker declined comment.
Chief Executive Bernd Pischetsrieder said earlier this month that he wanted to boost savings and efficiencies by more than 4 billion euros between 2006 and 2008 in order to reach his target of improving group earnings by 4 billion by that point.
In March, Pischetsrieder said Volkswagen needed to generate new savings of around 1.74 billion euros this year to reach its "ForMotion" goal of 3.1 billion for 2005, since the difference represented sustainable savings from last year.