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Showing results for tags '$7.2 Billion'.
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Days after the news came out that Volkswagen had outfitted a number of diesel vehicles with illegal software, the company set aside 6.5 billion Euros (about $7.2 billion) to deal with lawsuits and fines. But Volkswagen Group CEO Matthias Müller says that isn't enough. Speaking to reporters at Volkswagen's HQ, Müller said the 6.5 billion is just for the recall. "I can only speculate about any further provisions. Should there be a change in sales volumes, we would react rapidly," said Müller. So how much more could Volkswagen be in for? According to a report done by Credit Suisse, the worst-case scenario could see Volkswagen spending 78 billion Euros (about $84 billion). The best-case scenario has Volkswagen spending 23 billion Euros (about $25 billion). The biggest cost according to the report is owner reimbursement for the lost value of their vehicles. "The market does not appear to be discounting negative knock-on effects," said Credit Suisse analysts in the report. "The outcome for recall costs and fines is unclear and largely depends on the engine performance post repair." Source: Reuters, CNNMoney View full article -
Days after the news came out that Volkswagen had outfitted a number of diesel vehicles with illegal software, the company set aside 6.5 billion Euros (about $7.2 billion) to deal with lawsuits and fines. But Volkswagen Group CEO Matthias Müller says that isn't enough. Speaking to reporters at Volkswagen's HQ, Müller said the 6.5 billion is just for the recall. "I can only speculate about any further provisions. Should there be a change in sales volumes, we would react rapidly," said Müller. So how much more could Volkswagen be in for? According to a report done by Credit Suisse, the worst-case scenario could see Volkswagen spending 78 billion Euros (about $84 billion). The best-case scenario has Volkswagen spending 23 billion Euros (about $25 billion). The biggest cost according to the report is owner reimbursement for the lost value of their vehicles. "The market does not appear to be discounting negative knock-on effects," said Credit Suisse analysts in the report. "The outcome for recall costs and fines is unclear and largely depends on the engine performance post repair." Source: Reuters, CNNMoney
