Volkswagen is still facing billions in fines globally in the wake of the cheating emissions scandals and possible forced buy-backs could push the German car company into the red.
However, the manufacturer’s strong management is playing the safe card and not taking any risks, as it will tighten spending furthermore, according to Reuters, which is citing a report published by Automobilwoche, this weekend.
The German publication has data from an internal meeting, during which chief executive Matthias Mueller demanded a 10 percent cut of material costs and overheads for the 2017 budget, as he was quoted saying: “They [the savings] will be heavy and it won’t be done without pain. The effects of this crisis in the coming years will go to the limits of what we can bear.“
In Mueller’s vision, the cheating emissions scandal, which surfaced last September, happened just when Volkswagen should have been focusing its resources on trying to deal with “the structural change” in the industry.
Volkswagen’s new spending targets for the coming years, which include new products, plants and equipment, will be set on November 18, when the German giant’s supervisory board will meet, as two sources within the company have reportedly said.
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