Volkswagen to cut investment by EUR1bn a year to tackle emissions scandal
Volkswagen will cut investments by €1bn a year and accelerate its cost-cutting programme as it makes changes to the diesel technology used in its cars in the wake of the emissions scandal.
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The newly-formed Volkswagen Brand Board of Management said it has decided to switch over to installing only diesel drives with SCR and AdBlue technology in Europe and North America as soon as possible. The company added that diesel vehicles will only be equipped with exhaust emissions systems that use the best environmental technology.
The German car maker also highlighted the development of a standardised electric architecture for passenger cars and light commercial vehicles, and a new approach for the next generation of the Phaeton model, which will be electric.
Chief executive officer Dr. Herbert Diess said: “The Volkswagen brand is repositioning itself for the future. We are becoming more efficient, we are giving our product range and our core technologies a new focus, and we are creating room for forward-looking technologies by speeding up the efficiency program.”
At 1112 BST, VW shares were down 1.9% at €106.45.