AUTO INDUSTRY NEWS

VW Group to cut back on variants in light of diesel issue

VW Group to cut back on variants in light of diesel issue image

Text: Anton Andres / Photos: Volkswagen USA | posted December 01, 2015 14:54

Move estimated to save 1.9 billion Euros for Volkswagen

With Volkswagen Auto Group facing over billions of dollars and euros in fines, Germany's largest automaker has begun making drastic steps to save money. The company has announced that they will be cutting down variants of its car lineup.

The fines and Goodwill Program are one of the many reasons why Volkswagen has started to go for austerity measures. The company’s top labor representative, Bernd Osterloh said that VW will be trimming down the variants available in the core brand. Osterloh added that by doing this, it will lower complexity and costs, projecting savings at €1.9 billion. Bonuses of high ranging executives have also been lowered.

“We from the works council have long flagged the huge range of model variants and different components. It brings enormous complexity and adds to costs, for example, for logistics. We can take out costs there on a large scale and don't have to talk about job cuts.” adds Osterloh.

Audi, also a member of the Volkswagen Auto Group, has also released a statement saying that the 3.0 liter TDI V6 has also been fitted with a defeat device. Audi USA has joined Volkswagen with the Gift Card Goodwill Program as well. Like Volkswagen, Audi will be giving a prepaid Visa loyalty card worth $500, a dealership card worth $ 500 as well and 24 hour roadside assistance to Audi TDI owners for the next three years. Affected Audi models include the A3, A6, A7, A8, Q5, and Q7 models built from 2009 to 2015.