Volkswagen has been struggling to repair the damage caused by its diesel emissions scandal, the biggest crisis facing the company in its 78-year history.

The revelations about the carmaker's large-scale cheating of its emissions tests have so far wiped out a third of the firm's value, and caused a significant damage to its image worldwide. Moreover, VW may face fines running into billions of euros.

At a meeting with staff on Tuesday, Mueller warned that changes at the company would not be "painless," in a sign that there could be job cuts in response to the diesel emissions testing scandal.

"Technical solutions to the problems are within view. However, the business and financial consequences are not yet clear," Mueller said, according to a statement released by Volkswagen.

"Therefore we are putting all planned investments under review. What is not urgently needed will be scrapped or delayed," Mueller added. "And therefore we will adjust our efficiency program. I will be very open: this won't be painless."

However, Bernd Osterloh, the head of VW's works council, had earlier struck a slightly different tone stating that there won't be any job cuts at VW.

"The good news at the moment is that there are no consequences for jobs," he told a meeting of more than 20,000 workers at the carmaker's sprawling central operations in the northern German city of Wolfsburg.

"And we will do everything to secure employment," said Osterloh, who represents the group's workforce on the company's supervisory board.

"Together we will convince the financial markets of Volkswagen's strength," Osterloh said, calling for workers and management to rally together to overcome the crisis.

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