Volkswagen will limit investments, cut costs and focus on the Electric vehicle project in the wake of the diesel emission scandal.
On Tuesday Volkswagen announced its future action plans. The steps will be taken by Volkswagen to ensure a step into the future. The move seems essential since Volkswagen has suffered considerably after its diesel emissions scandal.
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According to Volkswagen they are going to limit their investment plans to save losses. Investment plans will be cut by 1 billion Euros a year. The investment plans will be limited at Volkswagen’s biggest division.
Similarly Volkswagen also announced its plan to focus on its Electric vehicle project. Since it was found out Volkswagen had been cheating on diesel emission tests the company has suffered considerably.
The scandal saw a steep downfall in the market value of Volkswagen. The fall has also affected the German economy, since Volkswagen was a major source of income. Analysts have predicted one solution is the introduction of an electric vehicle. An electric hybrid by Volkswagen could be the turning point for the company. More focus on the EV project may help Volkswagen in overcoming the crisis.
Volkswagen will also be cutting costs by refraining from investment plans. Volkswagen will face additional costs of up to $35 million for the replacement of diesel engines. The company will also stop making the money-losing Phaeton luxury saloon.
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The Saloon came with a price tag of $70,000. If the Saloon ever comes back into the market it will be as an EV. Previously Volkswagen had announced it will spend 85.6 Billion Euros in investments by 2019. But now the investments may not ever come to fruition.