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The Latest: Volkswagen shares is biggest riser in German market amid reports fix will be cheap

The latest developments in Volkswagen's emissions scandal. All times local:

2:50 p.m.

Shares in Volkswagen are rising amid reports that the cost of fixing its scandal-tainted cars — at least in Germany, where there are 2.4 million of them — might be far lower than expected.

Volkswagen's preference share price was up 1.4 percent at 107.30 euros, making it the strongest riser in Germany's main stock index, which was 0.5 percent higher.

Investors seem to be focusing on a report by a German magazine that says, without identifying its sources, that fixing the diesel engines that were identified to have test-cheating software could be done with a cheap piece of hardware in Germany.

The company is due to present to U.S. authorities its plans on how to fix the affected cars. Earlier, it also said it would cut its investments next year.

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1:20 p.m.

Volkswagen CEO Michael Mueller says the company's board has decided to reduce capital expenditures by 1 billion euros ($1.07 billion) in 2016 as it deals with the fallout of its emissions-rigging scandal.

Mueller said Friday after a meeting of the board at company headquarters in Wolfsburg, Germany, that the cuts would bring capital expenditure down to 12 billion euros next year.

Among other things, the company said it would postpone a new design center in Wolfsburg and the introduction of an all-electric Phaeton sedan.

He says "we're driving cautiously over the coming months, but we know where we want to go and we want to ensure that the Volkswagen company comes out of the current situation strengthened."

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10:10 a.m.

Volkswagen's board of directors is meeting at company headquarters in Wolfsburg to discuss the automaker's future financial strategy in the wake of revelations it rigged vehicles to cheat emissions tests.

The dpa news agency reported that the 20-member board began meeting Friday morning behind closed doors to talk about how to best balance savings and investment.

Volkswagen in September admitted it rigged emissions tests for four-cylinder diesel engines on 11 million cars worldwide, including almost 500,000 in the U.S.

It has already set aside 6.7 billion euros ($7.4 billion) to cover the costs of recalling those vehicles but experts say the total cost including fines could be much more.

VW also has until day's end to submit a draft plan to fix four-cylinder diesels to the U.S. Environmental Protection Agency.