Volkswagen is taking an axe to its investment budget for next year,
cutting spending to a maxiumum of €12bn as it finds ways to save costs
to deal with the fall-out from the emissions scandal.
The move marks a reduction of around €1bn compared to the group's previous budget.
"We will strictly prioritize all planned investments and
expenditures. As announced, anything that is not absolutely necessary
will be cancelled or postponed," said chairman Matthias Müller on
Friday.
Among the projects that are being put on ice is VW's proposed new
design centre in Wolfsburg, Germany. The decision not to press ahead
with the design centre will save €100m, the carmaker said.
The announcement is the latest in a series from VW setting out how it
plans to counter the hefty costs expected to arise from the emissions
scandal.
VW swung to a net loss of €1.67bn for the three months to
September 30, largely owing to a €6.7bn charge it has booked to cover
the costs of the crisis.
The carmaker has been under pressure to review its investments following
the scandal. At a meeting in October, the company's top labour
representative, Bernd Osterloh said any investments or projects that are
not "economical" must be reconsidered.
(Financial Times)