In the midst of a diesel emissions scandal that has dragged the Volkswagen Group through lawsuits, recalls and investigations, a new reports says that company has decided to put on hold all management promotions.
This is part of its efforts in trying to achieve some savings as it faces growing costs due to the emissions issue affecting as much as 11 million Volkswagen and Audi vehicles worldwide.
The report actually came from German publication manager magazin. Earlier in September, the company said it had planned to set aside around 6.5 billion Euros ($7.2 billion) to cover the cost of the diesel emissions issue. However, manager magazin reports that the cost has actually gone up to over 30 billion Euros, per Volkswagen’s internal analysis.
Earlier this month, Volkswagen Group CEO Matthias Müller addressed more than 20,000 employees in Hall 11 at the company’s Wolfsburg plant. He remarked, “Only when everything has been put on the table, when no single stone has been left unturned, only then will people begin to trust us again.” And in fact, according to a recent report from The Wall Street Journal, Volkswagen AG has reportedly put more engineers than it had previously acknowledged under suspension, in response to the costly emissions scandal. This was done following the recommendation of a law firm that conducted an internal investigation into the company.
According to Reuters, analysts are already predicting that Volkswagen will report an operating loss of 3.5 billion Euros for the third quarter. The company is expected to release its third quarter financial results on Wednesday.