Company officials are meeting US and California environmental agencies to discuss how Volkswagen plans to fix almost 500,000 diesel-powered vehicles in the USA that were affected by the cheating scandal.
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Volkswagen said it would reduce its capital spending to no more than 12 billion euros ($12.8 billion) next year as it grapples with the multi-billion-euro costs of its emissions crisis.
Mueller said Friday after a meeting of the board at company headquarters in Wolfsburg, German, that the cuts would bring capital expenditure down to 12 billion euros next year.
Software in the engines was not installed “in a forbidden manner”, and Volkswagen is cooperating with the EPA to clarify the matter, the Wolfsburg, Germany-based company said in a statement.
Investigators in the USA are reportedly keen to learn what part, if any, Bosch played in the establishment of the now infamous ‘ defeat device” – which saw Volkswagen, Skoda, Seat and Audi vehicles (with others still to be ruled out) switch to a “green’ mode when being tested for emissions.
VW has offered $1,000 worth of gift cards, half of which is to be spent at dealerships, to owners of cars with engines that pollute more than the law allows in an effort to identify the vehicles as it prepares to fix them.
“We will strictly prioritize all planned investments and expenditures…” What’s not immediately necessary will be canceled or postponed, the CEO said. But on Friday, it only gave numbers for next year, and did not give a figure for research and development, which last year accounted for about a quarter of overall planned spending of 85.6 billion euros for 2015-19.
Amid fears the emissions scandal could hit sales of diesel vehicles, Mueller said VW would increase spending on alternative technologies such as electric and hybrid vehicles by 100 million euros next year compared with previous targets.
The immediate cuts include an indefinite delay of the next-generation version of the company’s Phaeton electric vehicle, a pause in construction of a new design center in Germany and a potential change to plans for a paint shop in Mexico.
At 1248 GMT, VW shares were up 1.1% at €107.05. Labor representatives hold 10 of the 20 seats on the supervisory board.
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“In our view the short planning horizon and the relatively small 7% cut also reflect the material resistance of VW’s works council to cut investment and costs”, he said.
