German car manufacturer Volkswagen announced on Tuesday that it will be changing its technology used to control diesel exhaust after an emissions scandal that haunted the company.

The New York Times reported that the embattled carmaker has vowed to use a technology dubbed "a selective catalytic reduction system" which is expected to lessen the emissions on its diesel engines in countries in Europe and America, where the scandal was concentrated last month.

In an explanation of the scandal involving Volkswagen, BBC said the Environmental Protection Agency (EPA) discovered that the cars sold by the company "had devices in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results."

This cheating strategy was later on admitted by the German car company with them threatened to pay billions in fines for the violation.

The issue blew up leading to the resignation of chief executive Martin Winterkorn a week after the scandal.

"I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group," Winterkorn said in a statement quoted by the Washington Post.

Now, the new emissions system of the company is said to be similar to the one Volkswagen thought go using a few years back.

"The alternative technology, which is not part of its plan to fix cars already in circulation, was rejected by the company at the time as too costly," added New York Times.

The change would also reportedly include adding a fluid tank which has the capacity to clean the exhaust of new models.

"Diesel vehicles will only be equipped with exhaust emissions systems that use the best environmental technology," said Volkswagen chair Herbert Diess in the New York Times report.

It noted that the change in the cars is expected to come soon.

Aside from this, Associated Press as quoted by US News said the German car manufacturer also plans to develop "hybrid and electric vehicles."

It was indicated that Volkswagen is working on a plan to release the upcoming version of the Phaeton luxury sedan to and electric-powered vehicle.

"The Volkswagen brand is repositioning itself for the future. We are becoming more efficient, we are giving our product range and our core technologies a new focus, and we are creating room for forward-looking technologies by speeding up the efficiency program," Diess added.

The company is also expected to reduce the money they spend on investments by around 1 billion euros ($1.1billion) and do their best to cut their costs.