German auto giant Volkswagen said Tuesday it would slash its annual investment budget by one billion euros ($1.13 billion) for its main VW brand in the wake of the pollution-cheating scandal.

"The newly-constituted management board of the VW brand has taken a number of strategic decisions in an extraordinary meeting today," the company said in a statement. Brand chief Herbert Diess had decided "that investments will be cut by one billion euros per year and efficiency measures will be stepped up."