Volkswagen aims to cut costs by 20% by 2028 in a new restructuring drive.
Reports say plant closures are possible as the company seeks stable profits.
Chief executive Oliver Blume and finance chief Arno Antlitz presented the plan to senior managers.
Rising Chinese competition, weak sales, high costs and automation are forcing change across the sector.
An earlier overhaul already included 35,000 job cuts by 2030 to save €10bn.
The group says previous measures have produced savings in the double-digit billions and helped offset tariffs.
New data shows the EU trade deficit with China climbed to €359.3bn in 2025.
German carmakers remain deeply tied to the Chinese market through joint ventures.
Details on where the new savings will come from are still unclear.
Volkswagen will outline its strategy when it publishes annual results on 10 March.
