Volkswagen cutting costs to deal with emissions scandal

The statement says the agencies will investigate and take appropriate action.Volkswagen has denied that software was installed on the larger diesels “to change the emissions values in any impermissible way” and vowed to cooperate with the EPA.Volkswagen’s emissions troubles are far from over.

Now, Reuters reports another German company, parts supplier Bosch, has also come under the spotlight.

The automaker is under fire after admitting that millions of diesel vehicles featured software that could cheat emissions tests.

The report quotes two unnamed insiders who have revealed, not unexpectedly, that senior Volkswagen management is also in the sights of investigators.

Stertz said the software is legal in Europe and it’s not the same as a device that enabled four-cylinder VW diesel engines to deliberately cheat on emissions tests. Earlier on Friday, the European Commission gave VW until the end of the year to provide information on its overstatement of fuel efficiency in a few vehicles.

Volkswagen’s preference share price was up 1.4 percent at 107.30 euros, making it the strongest riser in Germany’s main stock index, which was 0.5 percent higher.

Volkswagen said it would reduce its capital spending to no more than 12 billion euros ($12.8 billion) next year as it grapples with the multi-billion-euro costs of its emissions crisis.

Mueller said Friday after a meeting of the board at company headquarters in Wolfsburg, German, that the cuts would bring capital expenditure down to 12 billion euros next year.

He said construction of a planned new design centre in VW’s home town of Wolfsburg was being put on hold, saving about 100 million euros, while the construction of a paint shop in Mexico was under review.

Michael Horn, head of Volkswagen’s USA operations, said at the Los Angeles Auto Show on Wednesday: “I am personally hopeful we will be able to announce something soon about the remedies, and which we are discussing with the agencies in upcoming days”.

The dpa news agency reported that the 20-member board began meeting Friday morning behind closed doors to talk about how to best balance savings and investment.

The company said it will cost at least 8.7 billion euros ($9.3 billion) to recall vehicles and deal with the consequences related to the cheating scandal.