Volkswagen Emissions Scandal – Cost-Cutting And Loyalty Bonuses Begin Photo:

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Trevor Collett | Oct, 07 2015 | 7 Comments

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.

Matthias Mueller
Matthias Mueller

All non-essential projects have now been shelved; Volkswagen said it is focussing all attention on a fix for the offending EA189 engines.

That fix is “imminent”, says Volkswagen, who reminded customers that its modern diesels are EU6 emissions compliant.

"We can and we will overcome this crisis, because Volkswagen is a group with a strong foundation,” Mr Mueller said.

“And above all because we have the best automobile team anyone could wish for."

Mr Mueller said the crisis was one of confidence, rather than simply a financial burden, and that the first challenge was win back the trust of Volkswagen customers.

The CEO asked employees and customers to be patient regarding a fix for the issue, saying “care is even more important than speed”.

"In many instances a software update will be sufficient,” Mueller said. “Some vehicles, however, will also require hardware modifications. We will keep our customers constantly informed about the measures and arrange workshop appointments."

Stay tuned to TMR for more.

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