VW CEO warns staff: 'Prepare for pain'

Matthias Müller, the new CEO of Volkswagen AG (VW), has told employees that the recovery of the company’s emissions-rigging scandal will “not happen without pain.”

During a speech on Tuesday, Müller vowed that they “will overcome this crisis” but also warned that VW would have to be very careful of costs. He also explained that the company would have to scrutinise all expenses, all future investments, vehicles and technology in order to spend only what is necessary.

Martin Winterkorn, the former CEO of VW, was forced to resign following an apology in response to the findings that the company had cheated on emissions tests.

Bernd Osterloh, Head of Volkswagen's employee council, later explained that the cuts would not have any immediate effect on jobs, but did not rule out the possibility entirely. “It is not possible to say today whether, and how, this wrongdoing could affect our jobs in the medium and long-term," Osterloh told reporters. “But, at the moment there are no consequences for jobs," including those of temporary workers, he continued.