Volkswagen Finds Hatches, Battens Them, and Braces for Massive Business Storm
Volkswagen suspended hiring at its finance arm and cut a shift at its Salzgitter engine factory to prepare its business for fallout from the largest business crisis that company has faced.
According to Reuters (via Automotive News), senior officials at Volkswagen will review Thursday findings from an internal investigation into the scandal that the automaker installed illegal emissions “defeat devices” on 11 million cars. The finance division said it would implement a hiring freeze through the end of this year.
“We are reacting to the current situation. It is a purely precautionary measure,” a spokesman told Reuters.
According to the report, the cut shift at the Salzgitter factory was an extra shift added for higher demand. German newspaper Frankfurter Allgemeine said the factory employs about 7,000 people and produces 7,100 engines daily.
The supervisory board will meet again Thursday afternoon to hear findings from its initial, internal investigation into the scandal and prepare for a U.S. law firm to further investigate the automaker.
Volkswagen faces billions in fines and costs associated with recalling its defective cars. The automaker set aside $7.3 billion to help pay for the scandal, but analysts are now saying that may not be enough.
More by Aaron Cole
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i for one find this a hell of a lot more interesting than hitler's cars. sorry ronnie.
This article reminded me of something my father-- a retired businessman-- predicted the weekend after the TDI story broke: that this will eventually lead to the German government having to decide whether or not (and how much) to bail out VW.
We'll teach those hatches.
Whether or not we talk about it, your mom is still on the cover. Sorry VW fan bois. We're going to talk about this.