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VW Cuts Diesel Production, Finance Unit Imposes Hiring Freeze
Volkswagen AG is preparing for an expected slump in demand for its vehicles after admitting it installed software to defeat emission controls in 11 million of its 4-cylinder diesels.
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Volkswagen AG is preparing for an expected slump in demand for its vehicles after admitting it installed software to defeat emission controls in 11 million of its 4-cylinder diesels.
The company has imposed a hiring ban on its VW Financial Services unit through the remainder of 2015, according to Reuters. The news service says VW also is dropping one production shift per week at its engine plant in Salzgitter, Germany.
VW's supervisory board is reviewing findings of an internal investigation into the scandal to determine who ordered and who approved the bogus software. The company also is preparing for an external probe by U.S. law firm Jones Day asking the same questions.
The crisis, which is the worst in VW's 78-year history, has erased one-third of the company's market value in two weeks. VW admits it used the software to manipulate emission certification tests for six years in the U.S., where the deception was discovered, and Europe, where most of the affected engines were sold.
Supervisory Board member Olaf Lies tells BBC News the personnel involved in the deception "acted criminally" and "must take personal responsibility."
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