Volkswagen to cut capex in wake of emissions scandal

The figure is around €1bn less than the budget for the previous year. Before the emissions scandal hit, Volkswagen had said it intended to spend around €17bn a year through to 2019 on new vehicles and technology.

VW said it was putting the construction of the planned new design centre in Wolfsburg on hold, saving around €100m. In addition, the construction of a paint shop in Mexico will be reviewed.

In terms of model ranges, it said the successor to the Phaeton – a pure-play electric model – is now being delayed.

Chairman Matthias Müller said: “We are operating in uncertain and volatile times and are responding to this.

“We will strictly prioritise all planned investments and expenditures. As announced, anything that is not absolutely necessary will be cancelled or postponed.”

He added that the company will review and potentially cancel further expenditures or spread them out to a greater extent in the next few weeks.

At 1248 GMT, VW shares were up 1.1% at €107.05.