Volkswagen Emissions Scandal – Cost-Cutting And Loyalty Bonuses Begin

Volkswagen’s ‘dieselgate’ emissions scandal continues to deepen with the carmaker now announcing cost-cutting and loyalty measures to deal with the crisis.

New VW Group CEO Matthias Mueller has addressed more than 20,000 employees at the company’s Wolfsburg headquarters in Germany, saying the Group will do all it can to ensure job security for its workers.

The Group initially set aside AU$10.2 billion to deal with the fallout, but market analysts have predicted that figure is a fraction of the amount required.

Volkswagen employees are understandably worried about their jobs but Volkswagen has announced that cost-cutting measures will begin with its research and development.

The only department that keeps its funding in full is the emissions team. Volkswagen is reported to be also 'canning' its famously lavish parties which sometimes feature international music acts.

Also on the table, according to a report from US industry paper Automotive News, are cash bonuses of up to US$2000 awarded to VW employees in the US for loyalty – as the carmaker looks to prevent a mass exodus from its ranks.

Dieselgate