Volkswagen AG Chief Executive Officer Matthias Mueller said the company will delay or cancel non-essential projects as pressure mounts to slash spending in the wake of the diesel-emissions scandal.
"We will review all planned investments, and what isn't absolutely vital will be canceled or delayed," Mueller told some 20,000 employees at the German company's headquarters Tuesday, according to an e-mailed statement of his remarks.
"And that's why we will re-adjust our efficiency program.
I will be completely clear: this won't be painless."
Fixing about 11 million rigged diesel vehicles is a costly prospect.
The 6.5 billion euros Volkswagen already set aside for repairs won't be enough to cover fines and potential legal damages as well, Mueller said.
The company is exploring options from a simple software upgrade to outright replacing some cars.
Fines may reach $7.4 billion in the U.S. alone, according to analysts from Sanford C. Bernstein Ltd.