VW to cut investment in core brand to cope with scandal : The Tribune India

Join Whatsapp Channel

VW to cut investment in core brand to cope with scandal

BERLIN: Volkswagen will cut investment plans at its biggest division by 1 billion euros ($1.1 billion) a year and step up development of electric vehicles, it said on Tuesday, as it battles to cope with the fallout from its cheating of diesel emissions tests.



Berlin, October 13

Volkswagen will cut investment plans at its biggest division by 1 billion euros ($1.1 billion) a year and step up development of electric vehicles, it said on Tuesday, as it battles to cope with the fallout from its cheating of diesel emissions tests.

The German company also said it would speed up cost cutting at the VW division, its largest by revenues, and put only the latest and “best environmental technology” in diesel vehicles.

Europe’s largest carmaker is battling the biggest business crisis in its 78-year history after admitting last month it installed software in diesel vehicles to deceive US regulators about the true level of their toxic emissions.

The scandal has wiped about a quarter off its market value, forced out its long-time chief executive and rocked both the global car industry and the German economy.

Germany’s ZEW think tank said on Tuesday its economic sentiment index had plummeted to its lowest level in a year, in part because of the uncertainty surrounding the auto industry, which employs more than 750,000 people in the country and is a major source of export income.

Economy Minister Sigmar Gabriel said he did not think Volkswagen’s problems would do lasting damage to Europe’s largest economy, however. — Reuters

Top News

Jailed gangster-politician Mukhtar Ansari dies of cardiac arrest

Jailed gangster-politician Mukhtar Ansari dies of cardiac arrest

Ansari was hospitalised after he complained of abdominal pai...

Delhi High Court dismisses PIL to remove Arvind Kejriwal from CM post after arrest

Delhi High Court dismisses PIL to remove Arvind Kejriwal from CM post after arrest

The bench refuses to comment on merits of the issue, saying ...

Arvind Kejriwal to be produced before Delhi court today as 6-day ED custody ends

Excise policy case: Delhi court extends ED custody of Chief Minister Arvind Kejriwal till April 1

In his submissions, Kejriwal said, ‘I am named by 4 witnesse...

‘Unwarranted, unacceptable’: India on US remarks on Delhi CM Arvind Kejriwal’s arrest

‘Unwarranted, unacceptable’: India on US remarks on Delhi CM Arvind Kejriwal’s arrest

MEA spokesperson says India is proud of its independent and ...

Gujarat court sentences former IPS officer Sanjiv Bhatt to 20 years in jail in 1996 drug case

Gujarat court sentences former IPS officer Sanjiv Bhatt to 20 years in jail in 1996 drug case

Bhatt, who was sacked from the force in 2015, is already beh...


Cities

View All