Volkswagen's diesel emissions scandal weighs in for one billion less investments for 2016. The Wolfsburg group has announced that capital expenditure in 2016 will not exceed 12 billion euros, 1 billion less than the average of the recent five-year plan 2015-2019. However, it is the first time since 2009 that VW has cut capital expenditure.
The cut of the investments it represents about 7% of the previous budget it is lower than what some analysts expected:? Arndt Ellinghorst, of Evercore ISI, recalls that the Volkswagen brand alone had already announced a cut in investments of 1 billion a year and attributes the prudence of the leaders in power.
The managing director, Matthias Müller, announcing the cut, added that the group "will completely refocus the investment plan: What is not strictly necessary, will be canceled or postponed". In particular, Müller said that "the electric Phaeton" a luxury sedan will be postponed. Furthermore, “the new design center in Wolfsburg will not be built”. Instead, investments in alternative technologies such as electric and hybrid cars will be increased by 100 million euros compared to the previous budget.
