Saturday 21 April 2018

Volkswagen's US emissions bill set to be 'under €20 billion'

Volkswagen has already announced €18.2bn of provisions to cover the costs of
Volkswagen has already announced €18.2bn of provisions to cover the costs of "Dieselgate," of which €16.2bn were booked in 2015.

Andreas Cremer

A SETTLEMENT with the US authorities over emissions-test cheating will push up the cost for Volkswagen, but the bill is likely to remain below $20bn (€19bn), a source familiar with the matter said yesterday.

Europe's biggest carmaker has said it is in advanced talks with the Justice Department over a $4.3bn (€4.1bn) settlement, exceeding provisions set aside to cover the costs of the scandal.

Volkswagen (VW) has already announced €18.2bn of provisions to cover the costs of "Dieselgate," of which €16.2bn were booked in 2015.

"We are counting on a sum of €16bn plus X. The X is likely to be in the €2bn to €4bn range," the source said.

VW declined to comment.

The German company's supervisory board was meeting yesterday to approve the draft deal with the Justice Department, which would be a major milestone in its attempts to recover from the biggest business scandal in its 80-year history.

VW shares rose as much as 4pc in early trade to their highest since the scandal broke in September 2015.

The company's acceptance of the settlement agreement and its plan to plead guilty to criminal misconduct was expected to be announced yesterday in Washington by the Justice Department and environmental regulators, said sources. (Reuters)

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