Volkswagen makes a guarantee for a 4.2 billion euro investment in Spain

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Photo Credit zeevveez, flickr
Volkswagen will guarantee its Spanish investments according to Minister Soria

SPANISH Industry minister, Jose Manuel Soria, revealed on Friday, October 9 that Volkswagen has guaranteed an investment of €4.2 billion in Spain.

The German automaker, which is embroiled in an emissions deception scandal, has recently admitted to cheating in diesel emission tests.

The company’s new chief executive, Matthias Mueller, said that Volkswagen is planning a review of all of its investments, which are in development as a result of the costs now incurred by fines and lawsuits as well as the millions of vehicles to be recalled.

“What is absolutely not necessary right now will be scrapped or postponed,” said Mueller, adding that “every euro that stays in the company helps us.”

Spanish Industry Minister Soria, however, told COPE radio that he met with new VW chairman Hans Dieter Poetsch on Thursday and came away with good news regarding the company’s commitment to Spain.

“Yesterday I had a meeting in Germany with the chairman and he guaranteed the investments planned for Spain would be maintained.”

Earlier in the year, Volkswagen revealed plans to invest €3.2 billion euros at its SEAT location near Barcelona and another €1 billion in Navarra in Northern Spain.

VW represents around 22,000 jobs in Spain and the wider industry makes up almost 10 per cent of economic output, employing around 9 per cent of workers in Spain.

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