Volkswagen its slashing annual investment by €1bn in order to counter losses it will suffer as a result of its emissions scandal.
In a statement this morning, the German car maker said it was changing its strategy for diesel cars, saying they “will be equipped with exhaust emissions systems that use the best environmental technology”.
Herbert Diess, chief executive of Volkswagen Passenger Cars, said:
Together with my board of management colleagues and the entire team we are working at top speed on these issues. Time and again, the Volkswagen team has proved it stands united and is fully focused on shaping the future, particularly when times are tough. We have now laid further foundations for that.
Last month the company admitted using software designed to dodge emissions tests in its diesel vehicles, resulting in the resignation of former chief executive Martin Winkerton.
Across the world, an estimated 11m vehicles are fitted with the cheat engines, including 1.2m in the UK. New boss Matthias Mueller said last week he expects the company to begin recalls in January next year.
The latest cut is additional to the €6.5bn the company said it was setting aside last month to cover losses associated with the cheats.
Since the scandal began, billions have been wiped off the company's value. This morning, shares have dipped slightly and are currently down 1.61 per cent compared to yesterday.