Volkswagen Is Freezing Managerial Promotions Following Emissions Scandal

VW

Volkswagen is freezing managerial promotions in 2016 as part of its plan to cut costs. The company is facing more than $30 billion in fines after it was discovered the company was cheating on emissions tests.

The company also plans to re-use as many parts as possible in the next version of its Gold model, a plan that could save it hundreds of millions of euros, according to Manager Magazin.

The company plans to report most of the losses at its VW brand, a move by┬áChief Executive Matthias Mueller that will help protect the company’s upmarket Audi and Porsche subsidiaries.

VW officials have already announced that they will cut investment plans at its VW division — the largest by revenue — and speed up cost cutting.

Manager Magazin’s report says the company plans to improve productivity and efficiency at VW plants as part of the savings drive, which could lead to job losses.

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The report cited internal employees who said no cuts to headcount had been agreed with workers’ representatives so far.