Volkswagen ignored its deadline to propose a diesel fix plan

Volkswagen says it is to reduce capital spending to no more than 12 billion euros next year as it struggles with the enormous cost of its emissions scandal.

The aim is for planned investments in property, plant and equipment, investment property and intangible assets, excluding capitalized development costs, to be capped at approximately 12 billion euros next year.

Volkswagen, which is set to provide detailed plans to fix vehicles that do not comply with U.S. emissions standards, is facing more pressure from officials in Washington and California to buy back older diesel cars.

Volkswagen has confirmed it is slashing capital expenditure as it looks to find savings in the wake of the emissions scandal.

Volkswagen was also expected to discuss initial plans for recalling vehicles in meetings Thursday and Friday with US and California regulators, according to the Wall Street Journal. For most of the cars, VW can either alter the exhaust system (cutting performance and gas mileage) or install a chemical treatment process (requiring multiple hardware changes).

The company faced a deadline Friday for announcing how it would fix the almost half a million cars that were already known to contain the defeat devices. The 482,000 affected cars in the United States were emitting as much as 40 times the permitted levels of smog- forming nitrogen oxides. The day before, VW-run Porsche had suspended sales of its Cayenne SUV for the model years 2014-2016.

The U.S. Environmental Protection Agency on Friday said that the probe now involves all Volkswagen and Audi models with a larger 3.0-liter diesel engine from model years 2009 through 2016.

A fix has yet to be announced, but a solution to the problem is likely to either hurt the cars’ fuel economy or their performance on the road. The company also admitted finding irregularities in carbon dioxide emissions in 800,000 other vehicles, all outside the U.S. a few of those were powered by gasoline engines.

The $1000 offer is in addition to the $2000 VW owners can receive to trade their cars in for new vehicles. Software in the engines was not installed “in a forbidden manner”, and Volkswagen is cooperating with the EPA to clarify the matter, the Wolfsburg, Germany-based company said in a statement.