Volkswagen AG is accelerating cost-cutting by reducing its Traton SE stake from 87.5% to 75% plus one share.

The divestment supports a strategy to streamline operations and focus on core automotive business. Volkswagen faces significant pressure as sales crater in its primary China market.

The current 87.5% stake in the truck manufacturer is valued at approximately €16.6 billion ($19.1 billion). Traton’s CEO stated the move follows increased pressure to manage costs and investments.

A larger free float is expected to enhance stock liquidity and investor appeal.