Thursday, August 25, 2016

VW needs in the US another comparison – Handelsblatt

Volkswagen in the US

For 85,000 diesel vehicles VW is still struggling to find a solution

. (Photo: AP)

Washington if possible further burdens come on Volkswagen to the settlement of the gas scandal in the US. The District Court in San Francisco ordered on Thursday to negotiate the US Justice Department with the carmaker on a comparison with the 3.0-liter engines. This might require the repurchase of the affected 85,000 diesel cars, the judge declared. If VW must take back those cars that could Analysts estimate cost the company billions more.

In addition, Volkswagen reached an agreement in principle to compensate its 650 dealers in the US. The amount of compensation was not immediately known. There are not yet negotiated the details, it said. For a definitive agreement District Judge Charles Breyer gave both sides until late September time. The dealer had remained seated after the announcement of the exhaust scandal on diesel cars almost a year ago.

This means that Volkswagen comes in addressing the exhaust scandal in the US even further. The Lower Saxony had agreed in June with US authorities and private plaintiffs to one to 15.3 billion dollars (converted EUR 13.6 billion) serious comparison. The Wolfsburg had added to pressure from the US environmental authorities to have used an illegal software that detects whether a car is under scrutiny and only then comply with the emission values. In normal traffic on the road of emissions is higher by a multiple. Worldwide up to eleven million diesel cars are affected by the manipulation that has been exposed almost a year ago in the US.



Diesel gate is always more expensive

  • The agreement with hundreds class action plaintiffs, authorities and US states cost Volkswagen to 15.3 billion dollars (equivalent to about 13.6 billion Euro). The majority is attributable to the repurchase of 475,000 diesel cars rigged with 2.0-liter engines, are reserved for the ten billion dollars. The actual cost will depend on how many same-seater return their car and whether the US authorities authorize a conversion.

  • By US Department of Justice is currently negotiating a pay a fine because of the exhaust manipulation. The “Wall Street Journal” reported that the German carmaker would a sentence of more than 1.2 billion dollars aufgebrummt. Analysts expect a sum between one and three billion euros. Some US states also want civilly seek to enforce higher damages because they are not satisfied with the comparison.

  • No agreement there is so far for around 85,000 larger vehicles with three-liter diesel engine. VW is confident that a repair can be done. The end of August, the District Court in San Francisco will be kept informed of the progress of the negotiations. If Volkswagen will be forced to repurchase these expensive cars that billions more would devour. Jürgen Pieper at Bankhaus Metzler estimates the cost at up to two billion euros.

  • A big chunk is also the conversion of approximately 8 , 5 million diesel cars in Europe. Estimates range from good one to three billion euros, which is expected to cost the. The auto analyst Arndt Ellinghorst of Evercore ISI also expects to shrinking market shares of Volkswagen and lower prices will be felt as a result.

  • compensation of the customers in Europe VW rejects still, although demands for a similar comparison as numerous as in the US. Should this nevertheless be payable, the Volkswagen could financially break the neck, experts fear. Analyst Pieper expects a loss of value in the order of EUR 500 per vehicle. “It is difficult to say whether VW is yet to pay a token amount at the end.” Industry expert Ellinghorst considers it likely that customers in Europe will see any money.

  • Worldwide, Volkswagen sees also with multibillion-dollar lawsuits filed by investors and small shareholders faced. The holders of shares and bonds throw Volkswagen claims to have informed too late about the extent of the gas scandal and want to enforce a compensation for losses. There is now before the Landgericht Braunschweig 170 damages claims of just under four billion euros.

  • the droves lawyers Volkswagen worldwide because of diesel scandal busy also devour money. The car expert Pieper goes up to one billion euros from his colleague Ellinghorst estimates the legal fees to several hundred million.

    Pieper expects the diesel Volkswagen scandal will cost a total of around 25 billion euros. Ellinghorst expects total costs of a similar amount. The experts believe the Group because of its reserves and the financial strength to be able to lift it. Only from 50 billion euros to Volkswagen takes part with investments, says Pieper.

    Source: Reuters

On the larger engines with three liter engine had rejected a repair plan by Volkswagen several weeks before the California environmental Protection agency Carb. Later the authority Volkswagen made hope, even the repair of these larger engines could be approved. In this car a contested in the US software function had not been sufficiently logged. The Group considers that this is not an illegal shutdown, but the software the component protection is used. 85,000 vehicles of the Group in the United States affected, including the VW Touareg, Porsche Cayenne and the Audi A8.

However, when comparing the dispute with the US authorities for VW is not over. Because with the US Justice Department to negotiate the Wolfsburg still about a settlement of the criminal investigation. Analysts expect Volkswagen must pay a record fine for his manipulation of the exhaust gas values. Toyota had done the previous highest penalty of a car manufacturer in the US for a clamping accelerators with 1.2 billion dollars.

In addition, the Lower Saxony, settle lawsuits by US states with a further comparative endeavor. Maryland, Massachusetts, New York and Pennsylvania demanding hundreds of millions of dollars in additional penalties of Volkswagen. The state of Washington had imposed a fine of $ 176 million for violation of air quality laws. Up to 14 other states could also make claims.

Elsewhere Volkswagen is facing lawsuits. Because of numerous legal risks associated with the exhaust gas scandal, the group had its provisions recently increased by EUR 1.6 billion to 17.8 billion. Of this, a large part is swallowed up by the comparison with authorities and private plaintiffs in the US.

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