Volkswagen has announced it will roll out new diesel-emission technology in Europe and North America, but admits significant investment cuts will be needed to recover from the emission-rigging scandal.
Announced by VW brand head Herbert Diess, the new emission-scrubbing technology for diesel engines will use urea-based technology called AdBlue as part of the Selective Catalytic Reduction system.
The carmaker also announced it will have to cut investment in its core auto division by €1bn a year (£746m) and speed up its cost-cutting programme.
The measures, designed to help the firm recover from economic losses following the revelations of cheating in emission tests in the USA, will include implementation of low-cost manufacturing techniques, Diess said.
Yesterday it was revealed Volkswagen has been selling cars equipped with software enabling them to only run emission-scrubbing technologies during testing in the UK since 2008.
In line with other high-ranked managers, UK VW chief Paul Willis said he was completely unaware of the practice until about one month ago when it was reported by the US Environmental Protection Agency.
"I knew nothing about this subject until 19 September this year, when I first heard it on the news from the United States," Willis said.
According to Germany’s transport ministry, the so called defeat device has been used to cheat in emission tests not only in the USA but also in Europe.
Britain's transport minister Patrick McLoughlin later told the lawmakers he did not believe other companies making cars in Britain were rigging emissions tests, but that he had yet to receive responses from some carmakers to letters he had sent on the issue.
A total of 1.2 million vehicles manufactured by the VW group including Volkswagens, Skodas, Audis and Seats have been affected in the UK. According to the firm's managing director, Volkswagen will start recalls of the vehicles in early 2016.