Volkswagen announced a cut of 1,000 million euros a year in investments (and increase the budget of the ecological)

we Knew that, sooner or later, Volkswagen would have to revise its forecast of investment for the next year. After the scandal of the TDI, after which it has also uncovered a second problem in the approval of emission of CO2, the brand is preparing for the high cost of correcting the situation. The cost of calls to review, sanctions, and trade-offs, which undoubtedly will reach astronomical figures. In that scenario, Volkswagen has already announced that it will reduce its budget into investment in 1000 million euros per year, limited to about 12,000 million euros, which remains an investment spectacular. Enough so that the current crisis does not have consequences even more in the future of the brand.

just thinking in the future, and in the panorama has to face Volkswagen from now on, Matthias Müller, the new CEO of the Volkswagen Group, recognizes that it will be important to prioritize all investments of the group, but in no event will mortgage their future.

Up to the point that, despite the cuts, Volkswagen has announced that it will devote more resources (a few hundred million additional euros) in the development of mechanical alternatives, especially in hybrid, plug-in hybrids and electric. And more specifically, in the application of these technologies in the brands Volkswagen, Audi and Porsche. Recall that last month, Volkswagen we already anticipated this movement in the announcement of their Strategic Plan to the year 2016.

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  • what impact those cuts? What will affect Spain?

    Volkswagen ensures that some of the projects are not going to touch each other, projects such as the next generation of Volkswagen Golf, the Audi Q5 and the new Volkswagen Crafter, manufactured in Poland. There will be no cuts in the development of the new modular platform for electric, the platform MEB.

    Volkswagen itself anticipates that there will be cuts in the following investments:

    • Will stop the construction of a new design centre in Wolfsburg (which already save 100 million euros).
    • a review of the feasibility of the opening of a paint line in the factory of Mexico.
    • delay the new generation of the Volkswagen Phaeton, a model that he initially wanted to become a flagship technology of the brand, and advocate the sustainability, washing his image after the scandal of the TDI comercializándolo with an electric motor pure.

    Volkswagen announces that there will be cuts in other projects, to arrive at the amount of 1,000 million euros planned. In the next few weeks we will know what are those cuts, that a priori will not affect the models most important of the group’s brands, and that, in principle, should not be the trimming of the investments planned in Spain.

    Source: Volkswagen
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