'VW crisis wont cause lasting damage to German economy'
German Economy Minister Sigmar Gabriel says he doesn’t think the scandal would cause permanent damage.
BERLIN - German Economy Minister Sigmar Gabriel said on Tuesday that he did not think the diesel emissions scandal at Volkswagen would permanently damage the German economy.
Asked whether the VW crisis would hit the economic outlook for Germany, Europe's largest economy, Gabriel said, "No, I do not expect the problems at Volkswagen to have lasting effects on the German economy."
Prosecutors around the world have launched investigations into the carmaker after it admitted that it equipped its diesel-powered vehicles with software aimed at cheating on emission tests.
The company is under pressure to identify those responsible, to say how vehicles with illegal software will be fixed and whether it also cheated in Europe.
Meanwhile, new CEO Matthias Mueller warned staff on Tuesday to brace for "massive cutbacks" in response to the diesel emissions scandal.
Volkswagen employs close to 60,000 at its main factory, roughly 10 percent of its global workforce.
How exactly did Volkswagen cheat?