VW sets aside $7.3b for emissions mess

Top Stories

VW sets aside $7.3b for emissions mess
Martin Winterkorn did not comment on his role in the scandal. - AP

Berlin - It could be more as 11m cars are involved

By Bloomberg

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Wed 23 Sep 2015, 12:00 AM

Last updated: Wed 23 Sep 2015, 10:22 AM

Volkswagen said irregularities on diesel-emission readings extend to 11 million vehicles around the world, forcing the German carmaker to set aside ?6.5 billion ($7.3 billion) in an initial tally of the potential costs.
Volkswagen extended its slide after the announcement, falling as much as ?30.85 and bringing the drop in two days to 37 per cent. That has wiped out ?24 billion in market value, as the probe into rigged air-polution widens. Regulators from Germany, France, South Korea and Italy have vowed to scrutinise the German automaker's vehicles.
To address the growing crisis, the executive committee of the carmaker's supervisory board will meet today, said people familiar with the matter.
"It's not just a US matter for VW - you have regulators all over the globe looking into it with potentially numerous fines to come," said Vincenzo Longo, a strategist for IG Group in Milan. "We don't see any stop to this bloodbath unless there is a change at the head of VW and full cooperation with authorities. Some heads need to roll to get investors buying back VW."
Chief executive officer Martin Winterkorn has been at the centre of the scrutiny since the US Environmental Protection Agency revealed on Friday that VW cheated on air-pollution tests. While the 68-year-old CEO said on Sunday that he was "deeply sorry" and promised a thorough investigation, he didn't specifically comment on his role.

More news from