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Volkswagen to step up savings in wake of emissions scandal - report

Reuters  |  FRANKFURT 

FRANKFURT (Reuters) - German carmaker is planning to tighten spending sharply as it deals with fall-out from its diesel cheating scandal, Automobilwoche reported on Saturday.

Chief executive Matthias Mueller in an internal meeting demanded that material costs and overheads be cut by 10 percent as part of its annual budget round for 2017, the trade magazine said in abstracts ahead of full publication on Oct. 17.

A spokesman declined to comment on the report.

Mueller was quoted as saying of the savings: "They 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."

He also said this was happening at a time when ideally the company should spend its money on dealing with the structural change in the automotive industry.

The diesel scandal is costing the company billions of euros and has prompted ongoing talks between management and employees on a cost-cutting deal for the core VW brand.

VW's supervisory board is scheduled to meet on Nov. 18 to approve new spending targets on products, plant and equipment for the coming years, two company sources have said.

(Reporting by Andreas Cremer and Vera Eckert, editing by Jeremy Gaunt)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Volkswagen to step up savings in wake of emissions scandal - report

FRANKFURT (Reuters) - German carmaker Volkswagen is planning to tighten spending sharply as it deals with fall-out from its diesel emissions cheating scandal, Automobilwoche reported on Saturday.

FRANKFURT (Reuters) - German carmaker is planning to tighten spending sharply as it deals with fall-out from its diesel cheating scandal, Automobilwoche reported on Saturday.

Chief executive Matthias Mueller in an internal meeting demanded that material costs and overheads be cut by 10 percent as part of its annual budget round for 2017, the trade magazine said in abstracts ahead of full publication on Oct. 17.

A spokesman declined to comment on the report.

Mueller was quoted as saying of the savings: "They 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."

He also said this was happening at a time when ideally the company should spend its money on dealing with the structural change in the automotive industry.

The diesel scandal is costing the company billions of euros and has prompted ongoing talks between management and employees on a cost-cutting deal for the core VW brand.

VW's supervisory board is scheduled to meet on Nov. 18 to approve new spending targets on products, plant and equipment for the coming years, two company sources have said.

(Reporting by Andreas Cremer and Vera Eckert, editing by Jeremy Gaunt)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
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Volkswagen to step up savings in wake of emissions scandal - report

FRANKFURT (Reuters) - German carmaker is planning to tighten spending sharply as it deals with fall-out from its diesel cheating scandal, Automobilwoche reported on Saturday.

Chief executive Matthias Mueller in an internal meeting demanded that material costs and overheads be cut by 10 percent as part of its annual budget round for 2017, the trade magazine said in abstracts ahead of full publication on Oct. 17.

A spokesman declined to comment on the report.

Mueller was quoted as saying of the savings: "They 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."

He also said this was happening at a time when ideally the company should spend its money on dealing with the structural change in the automotive industry.

The diesel scandal is costing the company billions of euros and has prompted ongoing talks between management and employees on a cost-cutting deal for the core VW brand.

VW's supervisory board is scheduled to meet on Nov. 18 to approve new spending targets on products, plant and equipment for the coming years, two company sources have said.

(Reporting by Andreas Cremer and Vera Eckert, editing by Jeremy Gaunt)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

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