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VW Won’t Cut €4.2 Billion Investment in Spain
Volkswagen AG has assured Spain that the costs of handling the company's diesel emissions scandal won't affect the company's plan to invest €4.2 billion in Spain over five years.
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Volkswagen AG has assured Spain that the costs of handling the company's diesel emissions scandal won't affect the company's plan to invest €4.2 billion in Spain over five years.
Earlier this week VW announced it will cut all but "absolutely vital" investments. The reductions are being made to help the company prepare for the financial burden of fines, recall costs and lawsuits spawned by 11 million diesel-powered vehicles rigged to cheat emission standards.
But Spain's Industry Minister Jose Manuel Soria tells La Cope national radio that VW Chairman Hans Dieter Poetsch has "guaranteed" the company's planned spending in Spain. VW aims to expand carmaking operations for its SEAT unit outside Barcelona and in Navarra.
VW employs about 22,000 people in Spain, Reuters notes. The news service says the country's auto industry generates about 10% of Spain's gross domestic product and accounts for 9% of its jobs.
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