The carmaker said Friday it will spend €12 billion on factories and equipment next year, down from about €13 billion on its previous plan.
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Embattled German carmaker Volkswagen has announced a 1 billion euro ($1.07 billion) reduction in its annual capital expenditure and said it will focus more on the next generation of driving technology.
Volkswagen, which is set to provide detailed plans to fix vehicles that do not comply with USA emissions standards, is facing more pressure from officials in Washington and California to buy back older diesel cars.
A number of reports say that Federal prosecutors with the US Department of Justice are investigating whether Bosch’s parent company Robert Bosch GmbH, knew or participated in Volkswagen’s years-long efforts to circumvent US diesel emissions tests.
The bigger exhaust will likely hurt performance and gas mileage, angering auto owners. The company met with the agencies on Thursday, with a final submission on Friday. In either case, nearly a half-million cars would have to be recalled for the repairs.
Volkswagen had the engine software modified to turn on the vehicle’s emission control system when it was being tested in the lab, then turn it off when the vehicle was on the road, according to US regulators.
It’s no secret that the offending diesel-powered models from the Volkswagen Group were fitted with Bosch engine management systems, but Bosch was quick to volunteer its innocence once the dieselgate scandal broke.
They outlined their objections in a letter to Volkswagen of America President and Chief Executive Officer Michael Horn, dated Thursday.
Earlier this month, Volkswagen’s own internal investigations found that the carbon dioxide data of some models was also incorrect. The 482,000 affected cars in the USA were emitting as much as 40 times the permitted levels of smog-forming nitrogen oxides.
CARB and the U.S. Environmental Protection Agency must approve Volkswagen’s remedies before any recall can start.
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“In light of the current situation and the review of our investments, the company has made a decision to delay by two or three years the increase of its stake in its joint venture with FAW”, a VW spokesman told AFP.
