Tuesday, January 10, 2017

“Dieselgate” : VW ready to pay $ 4.3 billion to the criminal – The Echoes

German auto giant Volkswagen said Tuesday be prepared to pay an additional penalty of $ 4.3 billion to end the criminal investigation by pleading guilty in the case of diesel engines-fixing in the United States.

In a press release, the automaker claims to have concluded with the Department of Justice (DoJ) and the customs authorities a “preliminary agreement” covering also civil penalties, and which must now be approved by its board of directors and by the american courts.

The giant with 12 brands were recognized in September 2015 have equipped 11 million of its cars worldwide, including about 600,000 in the United States, a software minimizing the actual level of emissions of polluting gases. Across the Atlantic, the group has already pledged to release a comprehensive plan for compensation of $ 14.7 billion, including the repurchase of the vehicles affected, which is comprised of 603 million at the destination of american States, $ 1.2 billion for the dealers and at least a billion extra for cars with large displacement.

Good performance

In its press release, Volkswagen ensures that its board of directors would meet on Wednesday to approve the agreement with the Department of Justice and recognizes that the total bill of the “dieselgate” in north America is expected to “exceed” provisions set aside to cover the cost of the scandal. The impact of “concrete” on the results in 2016 may not yet be defined, assured the company. In agreeing to plead guilty, the group escapes to a trial in the United States with unpredictable consequences, but this admission can now be used by other countries, especially in europe, which have opened investigations against Volkswagen. This announcement comes in the wake of the indictment of first executive of the group in the United States. Already, the “dieselgate” melting the market capitalization of the company, and awarded in 2015, its first annual loss in twenty years. Despite this scandal, the sales of Volkswagen , with its brands Audi, Porsche, Seat, Skoda or Bentley have reached a record of 10.3 million vehicles in 2016, an increase of 3.8 %.


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