Volkswagen aims to cut costs by 20% by 2028 as part of a new restructuring plan.
Plant closures are reportedly under consideration to secure long-term profitability.
Chief executive Oliver Blume and finance chief Arno Antlitz outlined the savings drive to senior managers.
The move responds to weak sales, high costs and the rapid expansion of Chinese carmakers in Europe.
An earlier overhaul already included 35,000 job cuts by 2030 and a €10bn savings target.
The company says previous measures have produced savings in the double-digit billions and helped absorb geopolitical pressures.
EU data showing a growing trade deficit with China has intensified concern for Germany’s car industry.
Volkswagen remains deeply invested in the Chinese market through joint ventures and local production.
Further details on where the new savings will come from are expected with the annual results in March.
