Volkswagen CEO: Massive cost cuts needed – CNBC
Billions of euros have been wiped off Volkswagen’s value following the revelation that the company had used software to change its diesel engines’ performance under U.S. test conditions.
Volkswagen Works Council chief Bernd Osterloh said all projects and investments would be reviewed. The scandal would impact earnings as well as workers’ bonuses, he said.
Mueller replaces Martin Winterkorn, who stepped down two weeks ago following revelations of the auto giant’s manipulation of emission tests for its diesel cars. In a statement he made at the time of his appointment, Mueller said he wanted to implement strict compliance standards while gaining back the trust the company has lost.
German business daily Handelblatt reported earlier on Tuesday that 8 million diesel vehicles in the European Union are equipped with software that cheats emissions tests. It obtained a company letter addressed to German parliamentarians which said all affected automobiles will be repaired in Volkswagen’s shops. The automaker would cover the costs associated with that.
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