MOSCOW (Sputnik) — After the emissions scandal became public, Volkswagen announced it would set aside more than $7 billion to tackle the consequences of the emissions effects.
"Transforming the core business also encompasses systematically promoting an entrepreneurial mindset and approach in the Group. Alongside gradually implementing the model line organization at the Group brands, this primarily involves realigning the components business <…> The Volkswagen Group hopes that realigning the components business will strengthen competitiveness, increase efficiency and make significant contributions to future topics such as the e-mobility initiative," the company said in a statement.
Volkswagen's components business currently accounts for some 67,000 employees at 26 locations worldwide, according to the statement.
The move comes in the wake of an emissions test results rigging scandal. Volkswagen has admitted its diesel vehicles were rigged with software designed to lower emission levels when being tested in the United States. German car manufacturer Opel, and Italian car maker Fiat have also been under scrutiny for programming their vehicles to lower emission test figures.
“Volkswagen has always enriched the lives of millions of people all over the world with its brands and products. Our aspiration is to continue that success story and play a leading role in shaping auto-mobility for future generations, too. This will require us – following the serious setback as a result of the diesel issue – to learn from mistakes made, rectify shortcomings and establish a corporate culture that is open, value-driven and rooted in integrity,” Volkswagen CEO Matthias Muller said while presenting overhaul plans, as quoted in the statement.
The Volkswagen emission scandal became public when the US Environmental Protection Agency (EPA) accused the German automaker of using software to falsify emission test results for its diesel-engine cars. Up to 11 million diesel engine Volkswagen vehicles worldwide manufactured over the last six years are estimated to have been programmed to produce false test results for nitrogen oxide emissions.
