The group said that it is aligning investment activity in its Automotive Division with the current situation. The aim is for planned investments in property, plant and equipment, investment property and intangible assets, excluding capitalized development costs, to be capped at approximately €12bn next year compared to €13bn for the previous planning period.

Matthias Müller, chairman of the Board of Management of Volkswagen Aktiengesellschaft, also announced plans to increase expenditure on alternative drive technologies by approximately €100m next year, with a focus on rapidly developing electric drive systems for the Volkswagen Passenger Cars, Audi and Porsche brands.

“We are operating in uncertain and volatile times and are responding to this," said Mr Müller. “We will strictly prioritize all planned investments and expenditures. As announced, anything that is not absolutely necessary will be cancelled or postponed.

“We are not going to make the mistake of economizing on our future. For this reason we are planning to further increase spending on the development of e-mobility and digitalization,” he added.

Müller also cited examples where investments are being spread out to a greater extent or cut back, including the planned construction of the new design centre in Wolfsburg, which is now on hold, saving approximately €100m. In addition, the construction of a paint shop in Mexico will be reviewed and, the successor to the Phaeton – a pure-play electric model – is being delayed.

“We will review and potentially cancel further expenditures or spread them out to a greater extent in the next few weeks, but without putting our future viability at risk,” explained Mr Müller. He added: “Together with the Works Council representatives we will make every effort to keep our core workforce on board.”