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VW bears no gifts for European owners of affected diesel cars

But they did halt sales of all V6 diesels in the USA.

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Volkswagen (VW) is battling the biggest business crisis in its 78-year history after admitting in September that it cheated diesel emissions tests in 482,000 2.0-liter diesel cars sold in the United States since 2009. Which sounds like they’re splitting hairs.

The allegation involving six-cylinder diesels means that more Volkswagen, Audi and Porsche owners could face recalls of their cars to fix the software, and VW could face steeper fines and more intense scrutiny from US regulators and lawmakers.

Under European emissions tests there is no provisions, as far as we can work out, for a “real world” NOx emissions level, so the only thing that matters is what a vehicle emits during testing, even if that in no way represents its real emissions and is achieved artificially.

The CEO warned clearing up the emissions scandal would still take several months, though VW plans to publish intermediate results of the investigation next month. Last Friday, the EPA said its scrutiny had spread to at least 75,000 additional vehicles, going back to the 2009 model year, after VW acknowledged that these vehicles had the same software as the initial batch.

Also Friday, VW said it will cut its spending by 1 billion euros ($1.07 billion) next year and “strictly prioritize” investments as it shores up its finances to deal with its emissions-rigging scandal.

According to a copy of a speech he gave to company managers at Volkswagen headquarters Monday, Mueller said the Federal Motor Transport Authority has signed off on a software update to fix affected 2-liter diesel motors, and has given the “basic go” to a fix for the 1.6-liter vehicles that will also involve replacing an air filter cartridge and grill. Volkswagen presented California regulators on Friday with a proposal to make its 2.0-liter diesel engines compliant with pollution standards for smog-causing nitrogen oxides.

Europe’s largest auto maker said on Friday it would trim capital expenditures-such as investment in plant expansions and equipment purchases-to €12 billion ($12.79 billion) in 2016 compared with a yearly average of €13 billion in previous years.

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The company expects to save money by delaying a few projects and put the construction of a new design center in Wolfsburg, Germany, on hold, saving up to EUR100 million. The cost of this is likely to be a couple of million euros.

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