Volkswagen has just announced that it is planning to slash its investment program by €1bn per year, as it struggles with the consequences of the diesel emissions scandal.
In a statement just published, the company announced a series of changes including turning all its diesel cars into cleaner exhaust emissions systems, and making the next generation of its Phaeton car run on electricity.
Dr. Herbert Diess, running Volkswagen’s Passenger Brand, says:
“The Volkswagen brand is repositioning itself for the future. We are becoming more efficient, we are giving our product range and our core technologies a new focus, and we are creating room for forward-looking technologies by speeding up the efficiency program.”
The key points from VW’s new strategic plan are:
- Investments to be cut by 1 billion euros per year compared with planning – combined with prioritization of projects for the future
- Accelerated implementation of the efficiency program creates space for reorientation
- Streamlined processes leverage further cost-saving potential, including cuts in fixed costs
- Product decisions formulated
- New Phaeton to become electric
- New Modular Electric Toolkit planned
