WOLFSBURG, Germany — Volkswagen will cut its spending by 1 billion euros ($1.07 billion) next year and “strictly prioritize” investments as it shores up its finances to deal with its emissions-rigging scandal, CEO Matthias Mueller said Friday.

The carmaker has decided to cancel or postpone investments that aren’t “absolutely necessary,” Mueller said. That will reduce overall capital expenditure to 12 billion euros in 2016.

“What we definitely won’t do is make cuts at the expense of our future,” Mueller said.

Among other things, he said, Volkswagen will postpone building a new design center in Wolfsburg and the introduction of an all-electric Phaeton sedan, and review other projects.

“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,” he told reporters after a board meeting.