Volkswagen will cut 1 billion euros ($1.1 billion) of investment a year in a bid to "reposition itself for the future," according to a plan announced in a statement released on Tuesday morning.
Earlier this month, the German car manufacturer admitted that 11 million vehicles were fitted with devices that rigged the emission tests of diesel cars in the U.S., a scandal that has attracted severe criticism and prompted CEO Martin Winterkorn to resign.
The company has already set aside 6.5 billion euros ($7.3 billion) to cover its costs in the immediate fallout of the scandal and has said it would invest in fitting new cars with the "best environmental technology" and focus on electric and hybrid vehicles. Among the changes is a plan to make the Phaeton model "a pure electric drive," according to the statement.
"We are very aware that we can only implement these innovations for the future of the Volkswagen brand effectively if we succeed with our efficiency program and in giving our product range a new focus," the company's new CEO, Dr. Herbert Diess, said.
"Time and again, the Volkswagen team has proved it stands united and is fully focused on shaping the future, particularly when times are tough. We have now laid the further foundations for that," Diess added.
The VW emissions scandal has already attracted attention from Paramount Pictures which has acquired the rights for a screen treatment of the story.
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