Reuters.com reported today that Volkswagen cut 1 billion euros ($1.1 billion) from its investment plan for next year on Friday, as the German carmaker braces for a multi-billion-euro hit from its emissions cheating scandal.
Volkswagen (VW) is battling the biggest business crisis in its 78-year history after admitting in September that it cheated U.S. diesel emissions tests. It said earlier this month it had also overstated fuel consumption in some vehicles.
Analysts have said the scandal could cost the company 40 billion euros or more in fines, lawsuits and vehicle refits.
Whilst in the US it has been reported that â€œa dealer familiar with Volkswagen’s plans says the automaker intends to offer $1,000 in gift cards and vouchers to owners of smaller diesel cars.
The offers would be a gesture of goodwill to owners with 2-liter four-cylinder diesel engines that have been implicated in an emissions cheating scandal. The offers could be announced Monday.
The dealer says owners would get a $500 Visa debit card to spend on anything they wish and a $500 voucher for oil changes, service or merchandise from dealers. The dealer didn’t want to be identified because details of the program haven’t been announced.
VW has admitted that about 482,000 diesels from the 2009 to 2015 model years have software that turns on pollution controls during government tests and shuts them off on the roadâ€.
In Canberra Australia more than 10,000 Australians have signed onto the Countryâ€™s second class-action suit against Volkswagen AG
In the UK no further comment has been made by VW and there are no reports of any offers to those affected.
We will keep you updated as news is released.
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