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Volkswagen switches to new diesel technology, slashes spending

A 2013 Volkswagen Passat with a diesel engine is evaluated at the California Air Resources Board emissions test lab.
A 2013 Volkswagen Passat with a diesel engine is evaluated at the California Air Resources Board emissions test lab. AP Photo/Nick Ut

FRANKFURT – Volkswagen said Tuesday it will switch to new diesel emissions technology in Europe and North America as well as cut $1.1 billion in spending plans over the next year.

VW brand head Herbert Diess made the announcement as the company struggles to overcome a scandal over cars equipped with computer software that let them evade U.S. emissions tests.

MORE: The latest on  the VW emissions scandal

Diess said the company would change its diesel technology in Europe and North America and install technology that uses a urea solution called AdBlue to reduce diesel emissions. He said that change would come “as soon as possible.”

He also said the company would extend its low-cost manufacturing techniques and reduce spending on investments.

WATCH: Matthew Buccieri of Toronto has a brain tumour which means he can’t drive. He also has a Volkswagen TDI diesel he now can’t easily sell. Sean O’Shea reports. 

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