#cuts
Volkswagen May Cut R&D Budget to Fend Off "Existence-Threatening Crisis"
Volkswagen has a very steep, very tough hill to climb, and Volkswagen’s incoming chairman said the emissions scandal that affects 11 million cars is “a threat to the firm’s viability albeit a surmountable one,” reports Reuters.
Dieter Pötsch, who will soon take the chairman spot at Volkswagen Group AG, described the challenges ahead as an “existence-threatening crisis for the company” during a corporate meeting with employees in Wolfsburg, Germany’s Welt am Sonntag reported.
In order to take on those challenges, Volkswagen needs to fund the repairs of some 11 million vehicles, meaning cuts may be made to the company’s 100 billion euro R&D investment budget that was expected to last until 2018.
A cut in R&D spending is seen as a way to avoid a downgrade of the company’s credit ratings, a source close to the company’s board told Reuters.
Ford, Holden, Lay Off Hundreds Of Workers Amid Slumping Demand
Ford and Holden are laying off hundreds of workers at their Australian plants as sales of domestic brands continue to take a beating.
Peugeot May Cut 10,000 Jobs In France
Bloomberg is reporting that Peugeot may expand their job cuts in France, with the potential for 10 percent of their domestic warehouse to be cut.
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