Volkswagen to Step up Savings in Wake of Emissions Scandal: Report
A U.S. flag flutters in the wind above a Volkswagen dealership in Carlsbad, California, U.S. May 2, 2016. (Photo: Reuters)
German carmaker Volkswagen is planning to tighten spending sharply as it deals with the fall-out from its diesel emissions cheating scandal, Automobilwoche reported.
Chief executive Matthias Mueller in an internal meeting demanded that material costs and overheads be cut by 10 percent as part of its annual budget round for 2017, the trade magazine said in abstracts ahead of full publication on Oct. 17.
A Volkswagen spokesman declined to comment on the report.
Mueller was quoted as saying of the savings: "They will be heavy and it won't be done without pain. The effects of this crisis in the coming years will go to the limits of what we can bear."
He also said this was happening at a time when ideally the company should spend its money on dealing with the structural change in the automotive industry.
The diesel emissions scandal is costing the company billions of euros and has prompted ongoing talks between management and employees on a cost-cutting deal for the core VW brand.
VW's supervisory board is scheduled to meet on Nov. 18 to approve new spending targets on products, plant and equipment for the coming years, two company sources have said.
Recommended For You
- El Clasico: Lionel Messi Nets Twice as Barcelona Beat Real Madrid 3-2
- Tata Hexa Automatic Off-Road Review: Can it Handle the Heat?
- IPL 2017: Kohli Refuses to Accept 'Break the Beard' Challenge
- When Gunday Cast Decided To Remind Fans Of Amitabh Bachchan's Mohabbatein
- Ford Figo S First Drive Review: The Reason Not To Buy The Baleno RS