More cost-saving measures for VW

In addition to giving its SEAT division an ultimatum, Volkswagen is considering even more drastic measures for cutting costs than previously-reported moves such as reducing its workforce, selling a minivan made by Chrysler and cutting costs on its new SUV by more than $1,000 per vehicle. Today's Detroit Free Press reported that Volkswagen may sell some of its peripheral businesses, including European car rental unit Europcar, based in Paris, France, and consulting firm Gedas, based in Berlin, Germany.

The moves would reportedly have no impact upon the automaker's 2005 earnings, but the cuts would presumably help VW get back on track financially for future years.