VW Scandal: Boss Warns Of 'Massive Cutbacks'

The new chief executive of VW has warned staff of "massive cutbacks" ahead in the wake of the firm's diesel emissions scandal.

Matthias Mueller said he had placed all the car group's future investments under review since taking over from Martin Winterkorn, who quit the job last month, but indicated he would do all he could to protect jobs.

He told a mass meeting at the company's sprawling headquarters in Wolfsburg: "Technical solutions to the problems are within view.

"However, the business and financial consequences are not yet clear.

"Therefore we are putting all planned investments under review.

"What is not urgently needed will be scrapped or delayed.

"And therefore we will adjust our efficiency programme. I will be very open: this won't be painless."

When the company admitted last month that 11 million vehicles were affected by software designed to cheat emissions-testing, VW said it was setting-aside €6.5bn (£4.9bn) to cover costs.

That sum is expected to grow considerably in the coming months as it recalls vehicles and faces the prospect of legal action from regulators and drivers.

The bill is also likely to be exacerbated by falling sales though the latest UK statistics for September, released on Tuesday , suggested that forward orders for new 65-plate cars propped up business for VW during the month.

The company currently employs almost 600,000 people worldwide - a tenth of them in Wolfsburg.