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VW cuts capex on emissions scandal

Friday, November 20, 2015 - 01:33

VW says it's to curb its 2016 spending plans in order to deal with the costs of emissions fixing. And in the US, regulators are are reportedly investigating German auto supplier Bosch over its role in the scandal. Kirsty Basset reports.

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Volkswagen's emissions crisis continues to take a toll. This time it's the company's spending plans which are taking a hit - with 1 billion euros cut from its 2016 investment plan, taking it down to around 12 billion. Chief Executive Matthias Mueller. (SOUNDBITE) (German) VOLSKWAGEN CHIEF EXECUTIVE, MATTHIAS MUELLER, SAYING: "We are going to have a close look at all our investments and spending. What isn't necessary will be cancelled or postponed." The company is battling the biggest business crisis in its 78 year history, after admitting to cheating on U.S. diesel emissions tests. Analysts say the costs associated with the scandal could rise to more than 40 billion euros - and the impact may be felt beyond the company. Adam Chester is from Lloyds Bank. SOUNDBITE (English) LLOYDS BANK COMMERCIAL BANKING HEAD OF ECONOMIC RESEARCH, ADAM CHESTER, SAYING: "There's 770,000 car workers in German y are employed by Volkswagen. So, of course, there is some direct consequences if car demand emanating from Volkswagen does start to fall." Another German household name is caught up in the investigation. U.S. authorities are reportedly looking into whether auto supplier Bosch knew or took part in VW's efforts to circumvent the emissions tests. The probe is at an early stage and there is no indication that U.S. prosecutors have found evidence of wrongdoing. The European Commission has given Volkswagen until the end of the year to provide information on how the fuel efficiency of some vehicles was overstated.

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VW cuts capex on emissions scandal

Friday, November 20, 2015 - 01:33