Economy

Dieselgate: VW to take another $3 bn hit; ex-official held

Dieselgate: VW to take another $3 bn hit; ex-official held”

Volkswagen's cumulative "costs" related to the ongoing diesel vehicle emissions cheating scandal now total around $30 billion (~€25 billion), following the company's report that it was booking an additional €2.5 billion provision related to hardware fixes for affected vehicles in the US.

Separately Munich prosecutors made an arrest in connection with the scandal.

At a German labour court hearing in February, Audi lawyers claimed that Ulrich Weiss, former head of diesel engine development at the carmaker, knew about the emissions manipulations but had failed to inform his superiors. He was suspended after the diesel emissions test-cheating was exposed, and then left the company.

Volkswagen previous year agreed to buy back or fix almost half a million 2.0-litre diesel cars in the USA that had been fitted with cheating software to make them seem less polluting than they were.

According to Bloomberg, Hatz was close to former VW chief executive Martin Winterkorn, who has denied any knowledge of the "defeat devices" which allowed vehicles to artificially reduce emissions during tests before their existence was exposed publicly. Before Friday, it had set aside 22.6 billion euros ($26.7 billion) to cover costs such as fines and vehicle refits.

Volkswagen today said it was setting aside another 2.5 billion euros to deal with the fallout from the "dieselgate" scandal in the United States as its efforts to recall tainted cars there proved to be more "complex" than expected.

On Saturday, a spokesman for Audi said the working relationship with Weiss "has been terminated by mutual consent".

VW, Europe's biggest automaker, admitted in September 2015 that it had used illegal software to cheat USA diesel emissions tests, sparking the biggest business crisis in its 80-year history.

BNP Paribas analyst Stuart Pearson said he has provided for another 1 billion euro charge to hit VW's fourth-quarter results because of outstanding technical fixes for the 3.0-litre Audis.

He also said the extra time needed to fix VW's 2.0-litre models meant increased depreciation of the cars being bought back, which also need to be fixed for resale.



Like this

Latest


01 October 2017
Maxim Integrated Products Inc. (MXIM) Shares Bought by Nisa Investment Advisors LLC
This buyback authorization allows the semiconductor company to buy up to 7.4% of its shares through open market purchases. On a similar note, the stock is 4.2% above its 50-day moving average, providing a measure of support for short positions.

01 October 2017
3 dead, 2 injured when shots fired in large crowd in Lawrence
It wasn't immediately clear what led to the shooting, and police didn't release the victims identities Sunday morning. Lawrence police say around 1:39 a.m., officers who were at the intersection of 11th and MA heard multiple gunshots.

01 October 2017
What's Propelling Glaxosmithkline Plc (NYSE:GSK) After Higher Shorts Reported?
The shares were bought at an average cost of GBX 1,599 ($21.50) per share, for a total transaction of £36,249.33 ($48,748.43). Suntrust Banks Inc.'s holdings in GlaxoSmithKline PLC were worth $19,353,000 at the end of the most recent reporting period.

01 October 2017
Boy, 17, charged after 'hazardous' material closes motorway
The substance, which was thrown from a motorway bridge near Winchester , was later discovered to be flammable, not explosive. A motorist caught up in the miles of stationary traffic said a police officer had described the hold up as a "bomb scare".

01 October 2017
Elliott fastest in final Dover practice
Elliott topped the field with a lap of 157.363 miles per hour . Dillon was the slowest of the 16 driver playoff field. Johnson's best lap was 156.904 miles per hour .

01 October 2017
Tyronn Lue says Kevin Love could be Cavs' permanent starting center
This is simply a way to best maximize offensive production by sacrificing some efficiency on the defensive end of the floor. Love said that he expects to see a lot more time at center this upcoming season.

01 October 2017
Carlo Ancelotti 'could be sacked today' as Bayern Munich plan crisis talks
Rummenigge hinted at possible repercussions for the PSG result, saying: "It's a loss we have to talk about, we have to analyse. I now expect the team to have a positive development and top performance, so we can reach our goals for this season".

01 October 2017
How Many Alibaba Group Holding Ltd (NYSE:BABA)'s Analysts Are Bearish?
Zweig-Dimenna Associates Llc increased Jpmorgan Chase & Co (NYSE:JPM) stake by 68,013 shares to 86,114 valued at $7.87M in 2017Q2. Lastly, Hillhouse Capital Management upgraded its stake in Alibaba Group Holding by 38,449.4% in the 2nd period.

01 October 2017
Queen Telugu Remake starring Tamannaah launched today
Tamannaah also praised Kangana for her performance in the original and said that the Bollywood actress was flawless for the role. This Baahubali actress Tamannah Bhatia is set to reprise the role of Kangana Ranaut's character in the Telugu remake of Queen.

01 October 2017
Keybank National Association OH Reduces Stake in Norfolk Souther Corporation (NSC)
Moreover, Great West Life Assurance Can has 0.11% invested in Norfolk Southern Corp. (NYSE:NSC) for 332,615 shares. The company's share price is down -0.77% from previous highs of around $133.81 per share on September 28, 2017.



Recommended