VW shares surge on bullish profits outlook

Volkswagen preferred shares surged around 6% Tuesday morning (March 16) after a bullish outlook for profitability.

The German giant is betting on cost cutting and electric vehicles to drive a rebound.

Chief executive Herbert Diess said Tuesday (March 16) a strong performance last year gives the company momentum.

VW now aims to more than double deliveries of electric vehicles to 1 million this year.

It will also move to standardize production of software, batteries and charging to trim costs.

The target comes a day a day after the firm said it would build six big battery plants around Europe.

It will also expand charging infrastructure worldwide, accelerating efforts to overtake Tesla.

All told, the automaker is aiming for an operating margin of 7-8% by 2025.

Workers won't be immune from moves to cut costs.

Over the weekend VW offered early or partial retirement to older employees.

Sources say that could see 4,000 posts go at German plants.

The VW group employs about 670,000 people worldwide.