VW to work earlier, more closely with suppliers.(News)(Volkswagen AG)(Brief Article)

Byline: Edmund Chew autonews@crain.com

Volkswagen AG says it will cut costs by working more closely with suppliers, pooling material purchases and buying more from China.

VW-brand Chairman Wolfgang Bernhard and VW Director of Supply Francisco Javier Garcia Sanz told 150 suppliers at a meeting here that they expected to cut material costs by 10 percent.

That reduction should yield about $1.21 billion in savings between 2006 and 2008.

The cost-cutting program is part of the automaker's planned $4.84 billion in efficiency gains in the next phase of its ForMotion project.

The first phase will have saved $3.75 billion when it ends in …