Volkswagen to Cut Spending by $1.1 Billion Amid Diesel Scandal
- Volkswagen to shift diesel vehicles to alternative technology
- VW Phaeton to be redesigned as electric-powered sedan
How Should Volkswagen Deal With Crisis?
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Volkswagen AG will reduce annual investment by about 1 billion euros ($1.1 billion) at its namesake car brand as the automaker steps up a cost-cutting push to weather the impact of the diesel-emissions scandal.
The cut to the VW brand shaves about 6 percent from the group’s 17.1 billion euros budgeted for annual spending on developing new vehicles and upgrading factories. The move stands to be an initial response as Volkswagen has said all non-essential projects will be delayed or canceled in the wake of the scandal.