Follow the exhaust gas scandal: the VW dispute with the US dealers for 1.2 billion … – Handelsblatt

Diesel-scandal: VW-in-chief Mueller: “We stand by our mistakes and are working on it”

WashingtonDue to the exhaust gas scandal, Volkswagen pays its 650 U.S. dealers a total of 1.2 billion dollars in compensation. The car manufacturer confirmed according to court documents from Friday an agreement with the dealers. On average these each receive 1.85 million dollars. An agreement in principle had met with both sides in August. A Federal judge must give the agreement the green light. The traders were after the announcement of the exhaust gas scandal remained almost a year ago on the diesel cars seat.

The agreement provides for, among other things, that VW buys unsellable Diesel cars from the dealers, bonus payments, and in addition to the required tags for two years waived. In addition, no Diesel vehicles of model years 2016 and 2017 to be sold in the United States, as lawyers for the dealers said. The company had said in September that it was uncertain whether ever again diesel cars in the USA come on the market. Since the end of 2015, the sale of VW was stopped for diesel vehicles in the United States.

diesel gate is for VW is always more expensive

• For Volkswagen, the financial risks have to be calculated by the exhaust gas, the affair that is still hard to come by. Although the group after the 15-billion-Dollar-a comparison, in the US, more clarity about what will make him the scandal of manipulated cost of diesel cars there. At the same time, the pressure on Wolfsburg in Europe, to compensate the customers here. Europe’s biggest car group, will face further costs for call-backs, shareholder lawsuits and penalties, which could heap on far more than ten billion euros. Analysts estimate that the work-up of the scandal will cost the group at the end of a total of between 20 and 35 billion euros, even up to 50 billion, the speech is separated. The following is a Summary of the estimated costs.

• The agreement with hundreds of class action plaintiffs, the authorities and the US Federal States, Volkswagen will cost up to 15.3 billion dollars (equivalent to about 13.6 billion euros). The largest part is attributable to the repurchase of 475,000 rigged diesel car with 2.0-litre engines, for a good ten billion dollars are reserved. The actual costs depend on how many diesel owners give back to their car and if the US authorities approve a conversion.

• Its around 650 US traders want to pay VW insiders, according to at least 1.2 billion dollars in compensation, because they were allowed to sell for almost a year, no diesel cars. An agreement in principle is taken for a final agreement, a court gave the parties until the end of September time.

• the U.S. Department of justice negotiations of a penalty payment due to the exhaust gas manipulation. The “Wall Street Journal” reported recently, the German car maker could be buzzing a penalty of more than $ 1.2 billion. Analysts expect a total of between one and three billion euros. Some U.S. States want to try in addition, under civil law, a higher compensation is not to enforce, because you are with the comparison is satisfied. It is a question of hundreds of millions of dollars.

• No agreement is reached, there are still about 85,000 larger vehicles with Three-Liter diesel engine. VW is confident that a repair can be successful. Until the end of October, the court in San Francisco has given Volkswagen the time to solution proposals. For the 3. November judge Charles Breyer scheduled a further hearing. Volkswagen should be forced, this is one expensive car to buy back, it would swallow up the other billion. Analysts have estimated the cost at up to € 2.5 billion.

• A large chunk of the upgrading of approximately 8.5 million diesel cars in Europe. Estimates range from one billion to three billion euros, which is likely to cost. The auto analyst Arndt Ellinghorst of Evercore ISI also expects that shrink will make the market shares of Volkswagen and lower prices to impact results.

• nationwide sue the car owner in front of several courts because of the excessive nitrogen oxide values to rescission of the purchase or damages. Alone in front of the regional court of Braunschweig, around 70 such cases are pending. A compensation of the customers in Europe, VW refuses to, even though demands are increasing for a similar comparison, such as in the United States. This should, however, be due, could break the Volkswagen financially, the Neck, fear experts. The auto analyst Jürgen Pieper from Bankhaus Metzler, a loss of value in the order of 500 euros per vehicle. “It is difficult to say whether VW will end up paying a symbolic amount.” Industry expert Ellinghorst believes it is likely that the customer will see in Europe, there is no money.

• the World threatens to Volkswagen in several countries of adversity. “We have the whole world on my neck,” said CEO Matthias Müller recently. South Korea, the second-largest market for diesel vehicles in Asia, withdrew the approvals for VW and Audi models, and it imposed a penalty of 14.3 million euros. In Australia, owners of the VW challenge-diesels compensation of the equivalent of 6700 euros per vehicle, the consumer protection authority complains also against VW. In Italy the competition authority, VW gave a penalty of up to five million euros, in the UK, the environment Committee of the Parliament called for a harder line against VW. Also in Canada, the group is still struggling for the settlement of the exhaust gas scandal. The U.S. compensation model would be transferred to the Northern neighbor, one would have expected the group, possibly with a further burden in the billions.

• see Worldwide Volkswagen also faced with billions in damages, lawsuits from investors and small shareholders. The holders of stock and bonds before throwing Volkswagen to have too late of the scale of the exhaust gas scandal, informed and want to enforce a compensation for exchange rate losses. To belong to the plaintiffs large US pension Fund, the Norwegian state Fund, but also the insurance group Allianz and the Dekabank. The state of Bavaria has also announced to pull out due to losses of the pension Fund for agricultural workers in court. Hesse and Baden-Württemberg consider such a step. The regional court of Braunschweig 290 damages are lawsuits with claims of around four billion euros.

• The throngs of lawyers, and the employees of Volkswagen in the world because of the diesel scandal, devour money. The car expert Pieper of up to one billion euros, his colleague Ellinghorst estimates that the legal costs of several hundred million.

  source: Reuters

The comparison with class action plaintiffs and the authorities to 18 also. October, be approved by a court. The appropriate documents were filed on Friday by the lawyers. In doing so, the repurchase or the conversion of 475,000 rigged diesel car with 2.0-litre engines. The agreement will cost VW up to 15.3 billion dollars.

No agreement is reached, there are still about 85,000 larger vehicles with 3.0-Liter engines, like the VW Touareg, the Porsche Cayenne and the Audi A8. Currently working on a technical solution to reduce the emissions of these vehicles, explained the Ministry of justice. A court has given the company until the end of October, time, solution, submit proposals for repair. That might have cost VW to analysts ‘ estimate of billion. In addition, penalties to the group, furthermore, because of the Manipulation of the exhaust-gas values.