Volkswagen to face $15-bn price tag for US settlement
Volkswagen AG's price tag to settle lawsuits in the US over its rigging of diesel emissions tests has jumped to more than $15 billion, $5 billion more than previously reported on the eve of a settlement to be filed Tuesday in a San Francisco court.
Under the deal, Volkswagen will set aside up to $10.03 billion to cover costs including buying back vehicles at pre-scandal values and compensating drivers as much as $10,000 per car for their troubles, two people familiar with the negotiations said. Those figures could rise if Volkswagen misses certain deadlines.
In addition, Volkswagen will pay $2.7 billion in fines that will go to the US Environmental Protection Agency and the California Air Resources Board and invest $2 billion in clean-emissions technology, one of the people said. The carmaker is also expected to announce a settlement with states, including New York, for about $400 million, another person said.
Total far exceeds any previous US civil settlement with an automaker, and it brings Volkswagen closer to the 16.2 billion euros ($17.8 billion) it has set aside to cover the costs of the scandal. But it won't put an end to Volkswagen legal troubles spanning three continents as the company still faces civil and criminal actions in other jurisdictions.
Volkswagen's shares rose 2.6 per cent to 108.8 euros at 9.08 am in Frankfurt.
The total economic impact of the scandal on Volkswagen was estimated at $55 billion euros by Richard Hilgert, an analyst at Morningstar Equity Research. That includes government fines, dealer remuneration, repair costs, vehicle repurchases, plus the litigation costs and damages awarded plaintiffs from class action lawsuits filed by shareholders and consumers, he said in a June 17 report.
Under the deal, Volkswagen will set aside up to $10.03 billion to cover costs including buying back vehicles at pre-scandal values and compensating drivers as much as $10,000 per car for their troubles, two people familiar with the negotiations said. Those figures could rise if Volkswagen misses certain deadlines.
In addition, Volkswagen will pay $2.7 billion in fines that will go to the US Environmental Protection Agency and the California Air Resources Board and invest $2 billion in clean-emissions technology, one of the people said. The carmaker is also expected to announce a settlement with states, including New York, for about $400 million, another person said.
Total far exceeds any previous US civil settlement with an automaker, and it brings Volkswagen closer to the 16.2 billion euros ($17.8 billion) it has set aside to cover the costs of the scandal. But it won't put an end to Volkswagen legal troubles spanning three continents as the company still faces civil and criminal actions in other jurisdictions.
Volkswagen's shares rose 2.6 per cent to 108.8 euros at 9.08 am in Frankfurt.
The total economic impact of the scandal on Volkswagen was estimated at $55 billion euros by Richard Hilgert, an analyst at Morningstar Equity Research. That includes government fines, dealer remuneration, repair costs, vehicle repurchases, plus the litigation costs and damages awarded plaintiffs from class action lawsuits filed by shareholders and consumers, he said in a June 17 report.
No comments:
Post a Comment
Have something to say?????