VW cuts $1.6bn as US diesel scandal widens

VW cuts $1.6bn as US diesel scandal widens

tdi_motor_685x325Volkswagen will cut 1 billion euros (NZD $1.62 billion) from its 2016 budget as its emissions scandal expands to include tens of thousands more US vehicles.

The spending cut is VW’s first since the financial crisis in 2009.

On Thursday, November 19, VW and Audi’s officials told the EPA that all 3-litre diesel engines from model years 2009 through 2016 had higher emissions than allowed.

Audi spokeswoman Jeri Ward says that the 3.0-litre software at issue “meets (EPA and CARB’s) definition of a defeat device.”

The US Environmental Protection Agency says the new disclosure covers a total of more than 85,000 vehicles, including the diesel Audi 2016 Audi A6 Quattro, A7 Quattro, A8, A8L, Q5, Porsche Cayenne and Volkswagen Touareg.

The EPA and CARB held a meeting with VW to discuss the company’s plans for the more than 482,000 2-litre cars that have illegal software that allow them to evade emissions standards.

The EPA is a reviewing an initial proposal for fixing the 2.0-litre diesel vehicle.

VW says it would “fully cooperate with EPA and CARB as we work to develop an approved remedy as quickly as possible” for the 2.0-litre diesel engine.

The German manufacturer says it is committed to making things right and regaining the trust of its valued customers.

“We are operating in uncertain and volatile times and are responding to this,” says VW chief Matthias Mueller.

“We will strictly prioritise all planned investments, and anything that is not necessary will be cancelled or postponed,” he says.

The VW supervisory board, says it would cap spending property, plant and equipment at around 12 billion euros next year, down about 8% on its previous plan of around 13 billion euros.

In previous years, the company has published investment plans for several years ahead. But last Friday, it only gave numbers for next year and did not give a figure for research and development.

Last week, the European Commission gave VW until the end of the year to provide information on its overstatement of fuel efficiency in some vehicles.

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