Volkswagen cuts capex, faces US pressure to buy back older diesel cars – CNBC
Volkswagen said it would reduce its capital spending to no more than 12 billion euros ($12.8 billion) next year as it grapples with the multi-billion-euro costs of its emissions crisis.
It will increase spending on alternative drive technology such as electric and hybrid vehicles by 100 million euros next year compared with previous targets, Chief Executive Matthias Mueller said at the carmaker’s base on Friday.
Europe’s largest automaker is cutting capital spending for the first time since the 2009 financial crisis and will review or delay non-product investments.
Separately, Volkswagen, which is set to provide detailed plans to fix vehicles that do not comply with U.S. emissions standards, faced more pressure on Thursday from officials in Washington and California to buy back older diesel cars.
A California Air Resources Board spokesman said officials at the automaker are scheduled to meet Friday with CARB and the U.S. Environmental Protection Agency to present detailed proposals for recalling and fixing about 482,000 vehicles sold in the United States with diesel engines that emit more smog-forming pollutants than allowed by law.
California has set a Nov. 20 deadline for Volkswagen to come up with a plan to fix the diesel cars affected by its rigging of emissions tests. The carmaker said in September that around 11 million diesel powered cars were affected worldwide, including 482,000 in the United States.