Embattled German carmaker Volkswagen has announced a 1 billion euro ($1.07 billion) reduction in its annual capital expenditure and said it will focus more on the next generation of driving technology.
The announcement Friday comes in the wake of its emissions scandal, with new CEO Matthias Mueller saying the company is responding to "uncertain and volatile times."
"We will strictly prioritize all planned investments and expenditures. As announced, anything that is not absolutely necessary will be canceled or postponed," he said after a regular meeting of the company's supervisory board, according to a press release.
The aim is for planned investments in property, plant and equipment, investment property and intangible assets, excluding capitalized development costs, to be capped at approximately 12 billion euros next year. This is down from its average of 13 billion euros per year.
The construction of a planned new design center in Wolfsburg is being put on hold and the construction of a paint shop in Mexico will be reviewed. A successor to its Phaeton model is also being delayed.