Volkswagen’s new CEO warned that the financial impact from the company’s emissions cheating scandal would be worse than previously acknowledged, forcing the company to curtail investment at a time when all carmakers are trying to keep ahead of new technology, The New York Times reported yesterday. The automaker previously said that it would set aside about $7.3 billion to cover the cost of bringing vehicles with illegal software into compliance with emissions standards. “But that will not be enough,” said Volkswagen CEO Matthias Müller, adding that job cuts might be ahead. He added that it was impossible to calculate the cost from penalties that Volkswagen was likely to face from governments — including state and federal authorities in the U.S. — or from lawsuits that are proliferating from customers and shareholders. About 11 million Volkswagen diesel vehicles, primarily in Europe and the U.S., have software meant to fool emissions tests. For now, the company will review new projects and delay or cancel any that are not considered essential.
