2014 Volkswagen Tiguan Test Drive 023

In the wake of the unceasing emissions scandal, Volkswagen Group has announced its decision to cut its investments by one billion euro for next year.

As revealed in an official statement, the company will have a 12 billion euro war chest that will be used to invest in property, plants and equipment.

Group chairman Matthias Müller said: “We are operating in uncertain and volatile times and are responding to this. We will strictly prioritize all planned investments and expenditures. As announced, anything that is not absolutely necessary will be cancelled or postponed.”

According to Müller, the move will allow Volkswagen to shift its focus to develop alternative drive technologies for Volkswagen, Audi and Porsche with an additional budget of 100 million euro being set for next year.

“We are not going to make the mistake of economising on our future. For this reason we are planning to further increase spending on the development of e-mobility and digitalisation”, he said.

Müller also outlined the first projects as examples where investments are being spread out or cut back. For instance, the construction of the planned new design center in Wolfsburg is being put on hold, saving approximately 100 million euros, the construction of a paint shop in Mexico will be reviewed, while the new all-electric Phaeton is being delayed.

“We will review and potentially cancel further expenditures or spread them out to a greater extent in the next few weeks, but without putting our future viability at risk. Together with the works council representatives we will make every effort to keep our core workforce on board”, explained Müller.

 

 



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