A new report indicates Volkswagen is looking for ways to extract €3 billion in price cuts from its suppliers.

A new report indicates Volkswagen is looking for ways to extract €3 billion in price cuts from its suppliers.

According to German newspaper Handelsblatt, the Volkswagen Group is working on drastic measures to have access to more funds necessary to solve the scandal involving their EA189 TDI diesel engines installed on around 11 million cars. One of the most important concerns suppliers as it seems VW wants to make savings of €3 billion which really sounds worrying as product quality will likely suffer from this. In addition, it's not actually fair that suppliers have to suffer from mistakes made by Volkswagen.

This is only a part of the plan as VAG also wants to make salary cuts and reduce the budgets for marketing and sponsoring activities. In addition, it was only earlier today when Volkswagen revealed its intentions to lower annual investments by €1 billion while several days ago we heard company CEO Matthias Müller saying some of the projects that are "not absolutely necessary" will be postponed or even canceled. This won't affect the second generation Phaeton which will still be out in the years to come and will be offered with the new 6.0-liter W12 TSI engine and also as an electric vehicle.