Volkswagen aims to cut costs by 20% by 2028 to stay competitive against Chinese rivals.
Reports say plant closures are being considered as part of the plan.
Chief executive Oliver Blume and finance chief Arno Antlitz presented the programme to senior managers.
The goal is to secure stable profits despite falling sales, high costs and rapid market changes.
The group already announced a major overhaul that will reduce 35,000 jobs by 2030.
Earlier measures are said to have saved tens of billions of euros and helped offset tariff pressures.
Rising imports from China have increased concern across Europe’s car industry.
Volkswagen remains deeply linked to the Chinese market through joint ventures and local production.
Details on where the new savings will come from have not been confirmed.
The company will present its annual results on 10 March.
