German carmaker Volkswagen (VW) AG is set to recall 340,000&nbsp;vehicle units in India across 13 models as part of its global recall to replace a software linked to emissions cheating tests, according to <a href="http://www.livemint.com/Companies/BVEFtjcdtj5M9jwUbGPn5L/Volkswagen-to-recall-34-lakh-vehicles-of-13-models-in-India.html">India&#39;s business newspaper Mint</a>.

Volkswagen had admitted in 2015 that about 11 million diesel cars worldwide were fitted with &#39;defeat devices&#39;&nbsp;in order to beat emissions tests.&nbsp;

The car models to be recalled by Volkswagen in India are hatchback Polo, sedans such as Vento, Jetta, Passat; Skoda&rsquo;s Fabia hatchback, Yeti SUV and sedans such as Rapid, Laura and Superb, also Audi&rsquo;s A4 and A6 sedans apart from Q3 and Q5 SUVs, the Mint report adds.

Six Volkswagen employees from Germany have been indicted in the US in the emissions cheating scandal.&nbsp;Former Volkswagen CEO Martin Winterkorn will face German MPs next week amid fresh allegations that top executives colluded in covering up the German automaker&#39;s emissions cheating practices. 
&nbsp;

(WION)

Volkswagen's decision to recall cars in India is part of its global move to replace a software linked to emissions cheating tests

German carmaker Volkswagen (VW) AG is set to recall 340,000 vehicle units in India across 13 models as part of its global recall to replace a software linked to emissions cheating tests, according to India's business newspaper Mint. Volkswagen had admitted in 2015 that about 11 million diesel cars worldwide were fitted with 'defeat devices' in order to beat emissions tests. The car models to be recalled by Volkswagen in India are hatchback Polo, sedans such as Vento, Jetta, Passat; Skoda’s Fabia hatchback, Yeti SUV and sedans such as Rapid, Laura and Superb, also Audi’s A4 and A6 sedans apart from Q3 and Q5 SUVs, the Mint report adds. Six Volkswagen employees from Germany have been indicted in the US in the emissions cheating scandal. Former Volkswagen CEO Martin Winterkorn will face German MPs next week amid fresh allegations that top executives colluded in covering up the German automaker's emissions cheating practices. (WION)

Volkswagen set to recall 340,000 cars in India: Report

Volkswagen AG, as part of a $4.3 billion settlement with US&nbsp;regulators, on Wednesday agreed to sweeping reforms, new audits and oversight by an independent monitor for three years to resolve diesel emissions cheating investigations.

Under the settlement of charges it installed secret software in US&nbsp;vehicles to allow them to emit up to 40 times legally allowable pollution, the German automaker agreed to change the way it operates in the United States and other countries.

VW will separate the jobs of product development and certification and testing and monitoring into different organisations.

The independent monitor will have access to Volkswagen documents and assess the efforts of VW&#39;s board of management and senior management to comply with environmental laws.

The monitor will file at least two follow-up reports with the Justice Department and conduct onsite interviews in Germany, the United States and potentially elsewhere with VW employees.

US&nbsp;regulators said the reforms, which come after President-elect Donald Trump criticised the Environmental Protection Agency (EPA) for over-regulating U.S. industries, were an example of why vigorous environmental enforcement was needed.

&quot;There are some structural changes that we are requiring so there is less ability for these types of things to happen,&quot; EPA Administrator Gina McCarthy told reporters on Wednesday.

VW will plead guilty to three felonies and be on probation for three years.

In addition to oversight by an independent monitor, the company will also face separate annual environmental management systems audits over the next three years.

VW said in a statement Wednesday that its emission tests are now evaluated externally and independently. Over the next three years, VW must test all of its US&nbsp;vehicles using portable emissions measurement system testing - a method designed to capture real-world emissions and deter cheating. It must also provide new protections for whistleblowers.

Many of the required reforms - including those for whistleblowers - have been adopted recently by VW globally.The company&#39;s Porsche unit will face separate audits and vehicle testing requirements.

McCarthy said the actions were needed to &quot;level the playing field for all the responsible companies who always do the right thing.&quot;

&quot;Markets like this don&#39;t manage or police themselves,&quot; she said.

VW must within three months create a group steering committee for monitoring and complying with US&nbsp;vehicle emissions laws and add new environmental protection provisions to its employee code of conduct.

VW faces fines of up to $50,000 a day if it fails to comply with some requirements - and up to a $1 million penalty if they make false statements to regulators.

(Reuters)

An independent monitor will file at least two follow-up reports with the Justice Department and conduct onsite interviews in Germany and US

Volkswagen AG, as part of a $4.3 billion settlement with US regulators, on Wednesday agreed to sweeping reforms, new audits and oversight by an independent monitor for three years to resolve diesel emissions cheating investigations. Under the settlement of charges it installed secret software in US vehicles to allow them to emit up to 40 times legally allowable pollution, the German automaker agreed to change the way it operates in the United States and other countries. VW will separate the jobs of product development and certification and testing and monitoring into different organisations. The independent monitor will have access to Volkswagen documents and assess the efforts of VW's board of management and senior management to comply with environmental laws. The monitor will file at least two follow-up reports with the Justice Department and conduct onsite interviews in Germany, the United States and potentially elsewhere with VW employees. US regulators said the reforms, which come after President-elect Donald Trump criticised the Environmental Protection Agency (EPA) for over-regulating U.S. industries, were an example of why vigorous environmental enforcement was needed. "There are some structural changes that we are requiring so there is less ability for these types of things to happen," EPA Administrator Gina McCarthy told reporters on Wednesday. VW will plead guilty to three felonies and be on probation for three years. In addition to oversight by an independent monitor, the company will also face separate annual environmental management systems audits over the next three years. VW said in a statement Wednesday that its emission tests are now evaluated externally and independently. Over the next three years, VW must test all of its US vehicles using portable emissions measurement system testing - a method designed to capture real-world emissions and deter cheating. It must also provide new protections for whistleblowers. Many of the required reforms - including those for whistleblowers - have been adopted recently by VW globally.The company's Porsche unit will face separate audits and vehicle testing requirements. McCarthy said the actions were needed to "level the playing field for all the responsible companies who always do the right thing." "Markets like this don't manage or police themselves," she said. VW must within three months create a group steering committee for monitoring and complying with US vehicle emissions laws and add new environmental protection provisions to its employee code of conduct. VW faces fines of up to $50,000 a day if it fails to comply with some requirements - and up to a $1 million penalty if they make false statements to regulators. (Reuters)

Volkswagen reaches $4.3 billion US settlement, agrees to sweeping reforms

Volkswagen AG suffered a new setback on Monday when an executive was charged with conspiracy to defraud the United States over the company&#39;s diesel emissions cheating and the automaker was accused of concealing the cheating from regulators.

Oliver Schmidt, who was general manager in charge of Volkswagen&#39;s environmental and engineering office in Michigan, did not enter a plea at an initial appearance in US&nbsp;District Court in Miami on Monday and was ordered held pending a hearing on Thursday by US&nbsp;Magistrate Judge William C&nbsp;Turnoff.

Schmidt, who was shackled and wearing a jail uniform, was charged with fraud and conspiracy in not disclosing a cheating device used to rig US&nbsp;diesel emissions tests from 2006 through 2015.

He was arrested on Saturday in Florida after attempting to return to Germany from a vacation there, the Justice Department said. Schmidt&#39;s lawyer David Massey said Schmidt had learned of the investigation and reached out to the US&nbsp;Federal Bureau of Investigation to offer to cooperate. Schmidt then met with FBI agents in London last year, he said.

The arrest was first reported by the New York Times.

The arrest and court appearance come as VW nears a $3 billion plus - and potentially $4 billion - settlement with the Justice Department and Environmental Protection Agency to resolve civil and criminal investigations into the diesel scandal, which sources have told Reuters could be announced as soon as Wednesday. Talks are still under way about some details of the settlements and no deal has been reached, sources said.

An FBI complaint unsealed on Monday against Schmidt said he and other VW employees told executive management about the &quot;existence, purpose and characteristics&quot; of an emissions cheating device in July 2015, and that the executives chose not to immediately disclose it to US&nbsp;regulators.

The FBI complaint accused VW of deliberately misleading regulators about cheating pollution tests in the United States, but did not charge the company with a crime.

Schmidt and other employees gave a presentation about the &quot;defeat device&quot; on or about July 27, 2015, more than a month before the automaker disclosed the device to US&nbsp;regulators in September 2015, the complaint said.

The cheating allowed nearly 580,0000 of VW&#39;s US&nbsp;diesel vehicles sold since 2009 to emit up to 40 times legally allowable pollution levels.

&quot;In the presentation, VW employees assured VW executive management that US&nbsp;regulators were not aware of the defeat device,&quot; the complaint said. &quot;Rather than advocate for disclosure of the defeat device to US&nbsp;regulators, VW executive management authorized its continued concealment.&quot;

One slide in the presentation included &quot;Indictment?&quot; if regulators did not approve its diesel software for 2016 models, according to the complaint. The complaint said that in 2006 VW employees realised they would not be able to meet US&nbsp;diesel emissions standard and decided to create cheating software.

Volkswagen said it could not comment on an ongoing legal matter. Hinrich Woebcken, VW&#39;s chief executive of the North America region, told reporters at the Detroit auto show on Monday that the automaker was &quot;surprised&quot; by the criminal charge.

A US&nbsp;VW employee, James Liang, was charged in September and pleaded guilty to misleading regulators about diesel emissions and agreed to cooperate with the investigation. His sentencing was delayed last week as prosecutors consider charging others, a court filing said.

&nbsp;

LATEST SETBACK

The news comes as VW is trying to convince Americans it has changed its ways. The world&#39;s second-largest automaker emphasised its focus on the US&nbsp;market as it rolled out two new sport utility vehicles at the Detroit auto show, including a new longer Tiguan SUV with more cargo space and a larger all-new Atlas SUV that will be built in Tennessee.

&quot;We intend to take that second chance,&quot; Woebcken told reporters who joined VW in January 2016. &quot;We are on a good path to get things straight&quot; and added that VW is a &quot;good corporate citizen&quot;. He said VW employs 600,000 people worldwide and they &quot;are honest people&quot; and that it was &quot;unfortunate that a small group of people generated this disappointment&quot;. Much of the company&#39;s senior management departed following the scandal, including CEO Martin Winterkorn.

But the allegations in the FBI filing show how difficult it is proving for VW to draw a line under the biggest business scandal in its 80-year history almost 16 months after it broke.

On Monday, however, VW shares rose 4.2 per cent to their highest since September 2015 on optimism about the expected US&nbsp;criminal settlement, topping the German blue-chip DAX index. The shares are still 10 per cent below pre-scandal levels.

VW admitted in September 2015 to installing the secret defeat device software in hundreds of thousands of US&nbsp;diesel cars to cheat exhaust emissions tests and make them appear cleaner than they were on the road, and that up to around 11 million vehicles could have similar software installed worldwide.

The automaker initially blamed a small group of &quot;rogue engineers&quot; for the test-cheating, and has repeatedly said no current or former board members were involved.

The ensuing scandal has cost the company more than $18.9 billion in provisions and forced it to drop its diesel offensive in the United States. VW&#39;s global brand chief Herbert Diess told reporters on Sunday the company has no plans to ever resume US&nbsp;diesel sales.

VW has already agreed to spend up to $17.5 billion in the United States to address claims from regulators, dealers, and owners.

Separately on Monday, a British law firm launched legal action against VW seeking thousands of pounds of compensation each for UK drivers affected by the emissions scandal.

In Britain, 1.2 million cars are affected and Harcus Sinclair UK, which is being supported by Slater and Gordon, said around 10,000 drivers had already signed up to the legal action before the launch.

(Reuters)

Schmidt, in shackles and a jail uniform, was in court after not disclosing a cheating device to beat environmental regulations

Volkswagen AG suffered a new setback on Monday when an executive was charged with conspiracy to defraud the United States over the company's diesel emissions cheating and the automaker was accused of concealing the cheating from regulators. Oliver Schmidt, who was general manager in charge of Volkswagen's environmental and engineering office in Michigan, did not enter a plea at an initial appearance in US District Court in Miami on Monday and was ordered held pending a hearing on Thursday by US Magistrate Judge William C Turnoff. Schmidt, who was shackled and wearing a jail uniform, was charged with fraud and conspiracy in not disclosing a cheating device used to rig US diesel emissions tests from 2006 through 2015. He was arrested on Saturday in Florida after attempting to return to Germany from a vacation there, the Justice Department said. Schmidt's lawyer David Massey said Schmidt had learned of the investigation and reached out to the US Federal Bureau of Investigation to offer to cooperate. Schmidt then met with FBI agents in London last year, he said. The arrest was first reported by the New York Times. The arrest and court appearance come as VW nears a $3 billion plus - and potentially $4 billion - settlement with the Justice Department and Environmental Protection Agency to resolve civil and criminal investigations into the diesel scandal, which sources have told Reuters could be announced as soon as Wednesday. Talks are still under way about some details of the settlements and no deal has been reached, sources said. An FBI complaint unsealed on Monday against Schmidt said he and other VW employees told executive management about the "existence, purpose and characteristics" of an emissions cheating device in July 2015, and that the executives chose not to immediately disclose it to US regulators. The FBI complaint accused VW of deliberately misleading regulators about cheating pollution tests in the United States, but did not charge the company with a crime. Schmidt and other employees gave a presentation about the "defeat device" on or about July 27, 2015, more than a month before the automaker disclosed the device to US regulators in September 2015, the complaint said. The cheating allowed nearly 580,0000 of VW's US diesel vehicles sold since 2009 to emit up to 40 times legally allowable pollution levels. "In the presentation, VW employees assured VW executive management that US regulators were not aware of the defeat device," the complaint said. "Rather than advocate for disclosure of the defeat device to US regulators, VW executive management authorized its continued concealment." One slide in the presentation included "Indictment?" if regulators did not approve its diesel software for 2016 models, according to the complaint. The complaint said that in 2006 VW employees realised they would not be able to meet US diesel emissions standard and decided to create cheating software. Volkswagen said it could not comment on an ongoing legal matter. Hinrich Woebcken, VW's chief executive of the North America region, told reporters at the Detroit auto show on Monday that the automaker was "surprised" by the criminal charge. A US VW employee, James Liang, was charged in September and pleaded guilty to misleading regulators about diesel emissions and agreed to cooperate with the investigation. His sentencing was delayed last week as prosecutors consider charging others, a court filing said. LATEST SETBACK The news comes as VW is trying to convince Americans it has changed its ways. The world's second-largest automaker emphasised its focus on the US market as it rolled out two new sport utility vehicles at the Detroit auto show, including a new longer Tiguan SUV with more cargo space and a larger all-new Atlas SUV that will be built in Tennessee. "We intend to take that second chance," Woebcken told reporters who joined VW in January 2016. "We are on a good path to get things straight" and added that VW is a "good corporate citizen". He said VW employs 600,000 people worldwide and they "are honest people" and that it was "unfortunate that a small group of people generated this disappointment". Much of the company's senior management departed following the scandal, including CEO Martin Winterkorn. But the allegations in the FBI filing show how difficult it is proving for VW to draw a line under the biggest business scandal in its 80-year history almost 16 months after it broke. On Monday, however, VW shares rose 4.2 per cent to their highest since September 2015 on optimism about the expected US criminal settlement, topping the German blue-chip DAX index. The shares are still 10 per cent below pre-scandal levels. VW admitted in September 2015 to installing the secret defeat device software in hundreds of thousands of US diesel cars to cheat exhaust emissions tests and make them appear cleaner than they were on the road, and that up to around 11 million vehicles could have similar software installed worldwide. The automaker initially blamed a small group of "rogue engineers" for the test-cheating, and has repeatedly said no current or former board members were involved. The ensuing scandal has cost the company more than $18.9 billion in provisions and forced it to drop its diesel offensive in the United States. VW's global brand chief Herbert Diess told reporters on Sunday the company has no plans to ever resume US diesel sales. VW has already agreed to spend up to $17.5 billion in the United States to address claims from regulators, dealers, and owners. Separately on Monday, a British law firm launched legal action against VW seeking thousands of pounds of compensation each for UK drivers affected by the emissions scandal. In Britain, 1.2 million cars are affected and Harcus Sinclair UK, which is being supported by Slater and Gordon, said around 10,000 drivers had already signed up to the legal action before the launch. (Reuters)

US charges Volkswagen exec with fraud over emissions scandal

Volkswagen, US regulators and attorneys for vehicle owners have made &quot;substantial progress&quot; on a deal for the remaining 80,000 diesel cars caught in the company&#39;s emissions cheating scandal but need more time to negotiate, a federal judge has said.

US District judge Charles Breyer in San Francisco yesterday gave the parties until Monday to report back on whether they had reached a settlement. He said he was optimistic a resolution would be reached after twice postponing a hearing to give the parties more time to talk.

At issue is what to do with about 80,000 3-litre diesel cars that spewed excess pollution after being programmed to cheat on emissions tests.

Volkswagen attorney Robert Giuffra has said the company believes it can recall and fix the 3-litre vehicles without affecting their performance.

The German automaker previously reached a deal for the other 475,000 polluting vehicles in the scandal. That settlement gives owners of those 2-litre diesel cars the option to have Volkswagen buy back their vehicles regardless of condition for the full trade-in price on September 18, 2015, when the scandal broke, or pay for repairs.

Regulators have not approved any fixes for the 2-litre cars. Either way, Volkswagen also will pay owners USD 5,100 to USD 10,000 each, depending on the age of the car and whether the owner had it prior to September 18 of last year.

Volkswagen has agreed to spend up to USD 10 billion compensating consumers.

The settlement also includes USD 2.7 billion for unspecified environmental mitigation and USD 2 billion to promote zero-emissions vehicles.

The global scandal erupted last year when the US Environmental Protection Agency said Volkswagen had fitted many of its cars with software to fool emissions tests. Car owners and the US Department of Justice sued.

The software recognised when the cars were being tested on a treadmill and turned on pollution controls. The controls were turned off when the cars returned to the road. The EPA alleged the scheme let the cars spew up to 40 times the allowable limit of nitrogen oxide, which can cause respiratory problems in humans.

The scandal has damaged Volkswagen&#39;s reputation and hurt its sales. The company has reached a separate USD 1.2 billion deal with its US dealers and is still facing potentially billions more in fines and penalties and possible criminal charges.

(PTI)

A federal judge said he was optimistic a resolution would be reached after twice postponing a hearing to give the parties more time to talk

Volkswagen, US regulators and attorneys for vehicle owners have made "substantial progress" on a deal for the remaining 80,000 diesel cars caught in the company's emissions cheating scandal but need more time to negotiate, a federal judge has said. US District judge Charles Breyer in San Francisco yesterday gave the parties until Monday to report back on whether they had reached a settlement. He said he was optimistic a resolution would be reached after twice postponing a hearing to give the parties more time to talk. At issue is what to do with about 80,000 3-litre diesel cars that spewed excess pollution after being programmed to cheat on emissions tests. Volkswagen attorney Robert Giuffra has said the company believes it can recall and fix the 3-litre vehicles without affecting their performance. The German automaker previously reached a deal for the other 475,000 polluting vehicles in the scandal. That settlement gives owners of those 2-litre diesel cars the option to have Volkswagen buy back their vehicles regardless of condition for the full trade-in price on September 18, 2015, when the scandal broke, or pay for repairs. Regulators have not approved any fixes for the 2-litre cars. Either way, Volkswagen also will pay owners USD 5,100 to USD 10,000 each, depending on the age of the car and whether the owner had it prior to September 18 of last year. Volkswagen has agreed to spend up to USD 10 billion compensating consumers. The settlement also includes USD 2.7 billion for unspecified environmental mitigation and USD 2 billion to promote zero-emissions vehicles. The global scandal erupted last year when the US Environmental Protection Agency said Volkswagen had fitted many of its cars with software to fool emissions tests. Car owners and the US Department of Justice sued. The software recognised when the cars were being tested on a treadmill and turned on pollution controls. The controls were turned off when the cars returned to the road. The EPA alleged the scheme let the cars spew up to 40 times the allowable limit of nitrogen oxide, which can cause respiratory problems in humans. The scandal has damaged Volkswagen's reputation and hurt its sales. The company has reached a separate USD 1.2 billion deal with its US dealers and is still facing potentially billions more in fines and penalties and possible criminal charges. (PTI)

Volkswagen, regulators get more time to seek emissions deal

German auto giant Volkswagen said today that it&nbsp;will leave the World Rally Championship by the end of the 2016 season, news agency AFP reported.

&nbsp;

The decision was made at a meeting on Tuesday at the company&rsquo;s Wolfsburg headquarters, according to Autosport.

&nbsp;

&quot;The commitment to the FIA world rally championship is coming to an end after four historically successful years, in which Volkswagen won WRC titles in the driver, co-driver and manufacturer rankings in a row with the Polo R,&quot; the company said in a statement.

&nbsp;

Last week, the company announced that luxury brand Audi was pulling out of Le Mans and the endurance world championship to concentrate on Formula E.

&nbsp;

The shock withdrawal means that Sebastien Ogier, along with other team drivers Finland&#39;s Jari-Matti Latvala and Norwegian Andreas Mikkelsen are on the driver market.

&nbsp;

But Ogier at least seemed confident.

&nbsp;

&quot;I feel so sorry for my fantastic team. We had four outstanding years! Thanks for their passion and support! Don&#39;t worry about me, we&#39;ll see us again,&quot; Ogier said on Twitter.

&nbsp;

Sebastien Ogier and VW have dominated the drivers&#39; and manufacturers&#39; championships and taken 42 individual rally wins along the way.&nbsp;

&nbsp;

&quot;The team has done great things,&quot; said VW Motorsport director Sven Smeets.

&nbsp;

&quot;At the same time, our vision is firmly ahead, because we are aware of the great challenges facing the entire company,&quot; added Smeets.

&nbsp;

&quot;From now on, the focus is on upcoming technologies in motorsport and on our customer sports range.&quot;

&nbsp;

(WION with inputs from AFP)

Volkswagen announced last week luxury brand Audi was pulling out of Le Mans and the endurance world championship to concentrate on Formula E

German auto giant Volkswagen said today that it will leave the World Rally Championship by the end of the 2016 season, news agency AFP reported. The decision was made at a meeting on Tuesday at the company’s Wolfsburg headquarters, according to Autosport. "The commitment to the FIA world rally championship is coming to an end after four historically successful years, in which Volkswagen won WRC titles in the driver, co-driver and manufacturer rankings in a row with the Polo R," the company said in a statement. Last week, the company announced that luxury brand Audi was pulling out of Le Mans and the endurance world championship to concentrate on Formula E. The shock withdrawal means that Sebastien Ogier, along with other team drivers Finland's Jari-Matti Latvala and Norwegian Andreas Mikkelsen are on the driver market. But Ogier at least seemed confident. "I feel so sorry for my fantastic team. We had four outstanding years! Thanks for their passion and support! Don't worry about me, we'll see us again," Ogier said on Twitter. Sebastien Ogier and VW have dominated the drivers' and manufacturers' championships and taken 42 individual rally wins along the way. "The team has done great things," said VW Motorsport director Sven Smeets. "At the same time, our vision is firmly ahead, because we are aware of the great challenges facing the entire company," added Smeets. "From now on, the focus is on upcoming technologies in motorsport and on our customer sports range." (WION with inputs from AFP)

Volkswagen to exit World Rally Championship by year end

A US&nbsp;judge on Tuesday approved one of the biggest corporate settlements on record, Volkswagen AG&#39;s&nbsp;$14.7 billion deal arising from its diesel emissions cheating scandal, and the German automaker said it would begin buying back polluting cars in mid-November.

US&nbsp;District Judge Charles Breyer in San Francisco signed off on VW&#39;s settlement with federal and California regulators and the owners of the 475,000 polluting diesel vehicles in a pivotal moment for the world&#39;s No. 2 automaker as it tries to move past a scandal that has engulfed it for more than a year.

VW admitted in September 2015 to installing secret software in its diesel cars to cheat exhaust emissions tests and make them appear cleaner in testing than they really were. In reality, the vehicles emitted up to 40 times the legally allowable pollution levels.

Volkswagen CEO Matthias Mueller told reporters in Berlin that Breyer&#39;s approval was &quot;an important milestone for us on the way towards clearing up the problem that we caused some time ago.&quot; Hinrich Woebcken, president and CEO of Volkswagen Group of America, pledged to carry out the terms &quot;as seamlessly as possible.&quot;

Breyer turned away objections from car owners who thought the settlement did not provide enough money, saying it &quot;adequately and fairly compensates&quot; them. Owners will get the pre-scandal &quot;trade in&quot; value of the vehicle and $5,100 to $10,000 in additional compensation.

&quot;Given the risks of prolonged litigation, the immediate settlement of this matter is far preferable,&quot; Breyer wrote.

Volkswagen agreed to spend up to $10.033 billion on the buybacks and owner compensation and $4.7 billion on programs to offset excess emissions and boost clean-vehicle projects.

The settlement was reached with the US&nbsp;Justice Department, Federal Trade Commission, the state of California and vehicle owners who had filed a class action lawsuit against VW. Volkswagen has admitted to misleading regulators and still faces an ongoing criminal investigation.

It represented the largest civil settlement worldwide ever reached with an automaker accused of misconduct.

While huge, the approved deal was still smaller than the $246 billion settlement reached by cigarette makers with 46 US states in 1998 and the $53 billion by BP to address costs and penalties arising from the 2010 Gulf of Mexico oil spill.

In total, Volkswagen has agreed to date to spend up to $16.5 billion in connection with the scandal, including payments to dealers, states and attorneys for owners. The scandal rattled VW&#39;s global business, harmed its reputation and prompted the ouster of its CEO.

The settlement covers 2.0-liter polluting diesel Beetle, Golf, Jetta, Passat and Audi A3 cars from the 2009 through 2015 model years. Up to 490,000 people will take part in the settlement because some vehicles had multiple owners.

Volkswagen spokeswoman Jeannine Ginivan said the automaker expects to begin buying back vehicles in mid-November. VW has hired 900 people, including one to be stationed at each dealership, to handle buybacks.

More costs for automaker

VW still faces billions more in costs to address 85,000 polluting 3.0-liter vehicles and Justice Department fines for violating clean air laws. It also faces lawsuits from at least 16 US&nbsp;states for additional claims that could hike the company&#39;s overall costs.

Last month, a Volkswagen engineer pleaded guilty in Detroit to helping the company evade US&nbsp;emission standards. His lawyer said he would cooperate with federal authorities in their criminal probe.

Kathryn Phillips, California director for the Sierra Club environmental group, said Volkswagen broke the law and that &quot;Judge Breyer is making them pay the price. Volkswagen chose to poison our families with dangerous pollution just to pad its pocketbook.&quot;

&quot;Today is a landmark day, when this innovative settlement can be put into action, investing billions of dollars into public health protections to remedy these serious violations,&quot; added Cynthia Giles, US&nbsp;Environmental Protection Agency assistant administrator.

VW will provide $2 billion over 10 years to fund programs to promote electric vehicle charging infrastructure, development of zero-emission ride-sharing fleets and other efforts to boost sales of cars that do not burn petroleum.

Volkswagen has been in intensive talks over how much compensation it may offer owners of the larger 3.0-liter diesel Porsche, Audi and Volkswagen vehicles that emit up to nine times legally allowable emissions and whether it will offer buybacks for some of the polluting SUVs. No final agreement has been reached. Volkswagen faces a Nov. 3 court hearing to update the court on those vehicles&#39; status.

Volkswagen agreed to make up to $1.21 billion in payments to 652 US&nbsp;VW brand dealers and $600 million to 44 U.S. states to address some state claims.

Nearly 340,000 owners have registered to take part in the settlement. About 3,500 owners have opted out. Volkswagen must fix or buy back 85 per cent of the 475,000 vehicles under the agreement by June 2019 or face additional costs.

Owners have until September 2018 to submit paperwork to sell back vehicles. VW will have to destroy repurchased vehicles unless it wins approval for fixes.

(Reuters)

The automaker said it will buy back polluting diesel cars, which emit up to 40 times the allowable pollution levels, from mid-November

A US judge on Tuesday approved one of the biggest corporate settlements on record, Volkswagen AG's $14.7 billion deal arising from its diesel emissions cheating scandal, and the German automaker said it would begin buying back polluting cars in mid-November. US District Judge Charles Breyer in San Francisco signed off on VW's settlement with federal and California regulators and the owners of the 475,000 polluting diesel vehicles in a pivotal moment for the world's No. 2 automaker as it tries to move past a scandal that has engulfed it for more than a year. VW admitted in September 2015 to installing secret software in its diesel cars to cheat exhaust emissions tests and make them appear cleaner in testing than they really were. In reality, the vehicles emitted up to 40 times the legally allowable pollution levels. Volkswagen CEO Matthias Mueller told reporters in Berlin that Breyer's approval was "an important milestone for us on the way towards clearing up the problem that we caused some time ago." Hinrich Woebcken, president and CEO of Volkswagen Group of America, pledged to carry out the terms "as seamlessly as possible." Breyer turned away objections from car owners who thought the settlement did not provide enough money, saying it "adequately and fairly compensates" them. Owners will get the pre-scandal "trade in" value of the vehicle and $5,100 to $10,000 in additional compensation. "Given the risks of prolonged litigation, the immediate settlement of this matter is far preferable," Breyer wrote. Volkswagen agreed to spend up to $10.033 billion on the buybacks and owner compensation and $4.7 billion on programs to offset excess emissions and boost clean-vehicle projects. The settlement was reached with the US Justice Department, Federal Trade Commission, the state of California and vehicle owners who had filed a class action lawsuit against VW. Volkswagen has admitted to misleading regulators and still faces an ongoing criminal investigation. It represented the largest civil settlement worldwide ever reached with an automaker accused of misconduct. While huge, the approved deal was still smaller than the $246 billion settlement reached by cigarette makers with 46 US states in 1998 and the $53 billion by BP to address costs and penalties arising from the 2010 Gulf of Mexico oil spill. In total, Volkswagen has agreed to date to spend up to $16.5 billion in connection with the scandal, including payments to dealers, states and attorneys for owners. The scandal rattled VW's global business, harmed its reputation and prompted the ouster of its CEO. The settlement covers 2.0-liter polluting diesel Beetle, Golf, Jetta, Passat and Audi A3 cars from the 2009 through 2015 model years. Up to 490,000 people will take part in the settlement because some vehicles had multiple owners. Volkswagen spokeswoman Jeannine Ginivan said the automaker expects to begin buying back vehicles in mid-November. VW has hired 900 people, including one to be stationed at each dealership, to handle buybacks. More costs for automaker VW still faces billions more in costs to address 85,000 polluting 3.0-liter vehicles and Justice Department fines for violating clean air laws. It also faces lawsuits from at least 16 US states for additional claims that could hike the company's overall costs. Last month, a Volkswagen engineer pleaded guilty in Detroit to helping the company evade US emission standards. His lawyer said he would cooperate with federal authorities in their criminal probe. Kathryn Phillips, California director for the Sierra Club environmental group, said Volkswagen broke the law and that "Judge Breyer is making them pay the price. Volkswagen chose to poison our families with dangerous pollution just to pad its pocketbook." "Today is a landmark day, when this innovative settlement can be put into action, investing billions of dollars into public health protections to remedy these serious violations," added Cynthia Giles, US Environmental Protection Agency assistant administrator. VW will provide $2 billion over 10 years to fund programs to promote electric vehicle charging infrastructure, development of zero-emission ride-sharing fleets and other efforts to boost sales of cars that do not burn petroleum. Volkswagen has been in intensive talks over how much compensation it may offer owners of the larger 3.0-liter diesel Porsche, Audi and Volkswagen vehicles that emit up to nine times legally allowable emissions and whether it will offer buybacks for some of the polluting SUVs. No final agreement has been reached. Volkswagen faces a Nov. 3 court hearing to update the court on those vehicles' status. Volkswagen agreed to make up to $1.21 billion in payments to 652 US VW brand dealers and $600 million to 44 U.S. states to address some state claims. Nearly 340,000 owners have registered to take part in the settlement. About 3,500 owners have opted out. Volkswagen must fix or buy back 85 per cent of the 475,000 vehicles under the agreement by June 2019 or face additional costs. Owners have until September 2018 to submit paperwork to sell back vehicles. VW will have to destroy repurchased vehicles unless it wins approval for fixes. (Reuters)

US judge approves $14.7 billion deal in Volkswagen diesel scandal

Volkswagen labour leaders said on Wednesday they had not yet struck a deal with management on cost cuts at the core autos division, denying an earlier report by Manager Magazin.

&quot;Constructive talks are still ongoing and will be continued tomorrow. The fact is: the pact may still fail. Especially if the company does not make concrete assurances for certain products, such as battery manufacturing,&quot; Gunnar Kilian, a labour leader at VW&#39;s group works council, said in an e-mailed statement.

Monthly Manager Magazin had earlier said on its website that VW had agreed with labour leaders on cutting costs at the VW brand by between 5 and 6 billion Euros ($5.5-6.6 billion) by 2025 at the latest.

Europe&#39;s largest automaker will take advantage of natural attrition to cut between 10,000 and 20,000 staff over the next decade, the magazine had said, citing unnamed sources familiar with the talks.

VW didn&#39;t return calls seeking comment.

Talks between the two sides on a so-called future pact including cost cuts and a strategy for the brand&#39;s German plants are still ongoing, the magazine said.

VW&#39;s brand management has yet to agree with labour leaders on fixed targets and quotas for products and investments in German factories as well as prospects for battery production in Germany, works council chief Bernd Osterloh said in an interview with Braunschweiger Zeitung published earlier on Wednesday.

VW, under pressure to make cuts at high-cost operations in Germany to fund a post-diesel gate strategic shift to electric cars and autonomous driving, has been in talks with labour on the future pact since June.

A cost-cutting deal at VW&#39;s largest division by sales and revenue is seen by analysts as key to the stock&#39;s revival. VW expects the unit&#39;s operating margin to climb to 4 per cent by 2020 from about 2 per cent, less than an original target of 6 per cent, the magazine said.

(Reuters)

Manager Magazin had earlier said on its website that VW had agreed with labour leaders on cutting costs at the VW brand by 5-6 bn Euros

Volkswagen labour leaders said on Wednesday they had not yet struck a deal with management on cost cuts at the core autos division, denying an earlier report by Manager Magazin. "Constructive talks are still ongoing and will be continued tomorrow. The fact is: the pact may still fail. Especially if the company does not make concrete assurances for certain products, such as battery manufacturing," Gunnar Kilian, a labour leader at VW's group works council, said in an e-mailed statement. Monthly Manager Magazin had earlier said on its website that VW had agreed with labour leaders on cutting costs at the VW brand by between 5 and 6 billion Euros ($5.5-6.6 billion) by 2025 at the latest. Europe's largest automaker will take advantage of natural attrition to cut between 10,000 and 20,000 staff over the next decade, the magazine had said, citing unnamed sources familiar with the talks. VW didn't return calls seeking comment. Talks between the two sides on a so-called future pact including cost cuts and a strategy for the brand's German plants are still ongoing, the magazine said. VW's brand management has yet to agree with labour leaders on fixed targets and quotas for products and investments in German factories as well as prospects for battery production in Germany, works council chief Bernd Osterloh said in an interview with Braunschweiger Zeitung published earlier on Wednesday. VW, under pressure to make cuts at high-cost operations in Germany to fund a post-diesel gate strategic shift to electric cars and autonomous driving, has been in talks with labour on the future pact since June. A cost-cutting deal at VW's largest division by sales and revenue is seen by analysts as key to the stock's revival. VW expects the unit's operating margin to climb to 4 per cent by 2020 from about 2 per cent, less than an original target of 6 per cent, the magazine said. (Reuters)

VW works council denies it has agreed cost cut deal

Volkswagen AG, in another step to move past its costly diesel emissions cheating scandal, has agreed to pay $175 million to US lawyers suing the German automaker on behalf of the owners of 475,000 polluting vehicles, two people briefed on the agreement said on Friday. 
&nbsp; 
In August, the lawyers in the class action litigation sought up to $332.5 million in fees and costs for their work in a $10 billion settlement that gives US owners of 2.0 litre polluting cars the ability to sell back their vehicles to Volkswagen.

The latest deal with the lawyers means VW has now agreed to spend up to $16.7 billion to compensate US owners and address claims from states, federal regulators and dealers arising from the &quot;Dieselgate&quot; scandal.

The resolution of legal fees clears another hurdle as the world&#39;s No 2 automaker looks to resolve all of the outstanding aspects of a scandal that disrupted its global business, hurt its reputation and led to the ouster of its CEO last year.

VW in September 2015 admitted using sophisticated secret software in its cars to cheat exhaust emissions tests, with millions of vehicles worldwide affected. The cheating allowed VW&#39;s US vehicles sold since 2009 to emit up to 40 times legally allowable pollution levels.

The $175 million includes attorneys&#39; fees and other costs, according to the sources, who spoke on condition of anonymity.

Lawyers for the owners of polluting vehicles and a spokeswoman for Volkswagen declined to comment.

US District Judge Charles Breyer on Tuesday is set to hold a hearing in San Francisco on whether to grant final approval of the vehicle owners&#39; settlement announced in June, which would be the largest-ever automotive buy-back offer in the United States.

VW has agreed to spend up to $10.033 billion to buy back the vehicles and compensate owners.

It may also offer vehicle fixes if regulators approve. Under a timetable announced this summer, regulators could approve a fix for some 2015 VW diesel vehicles as early as next month.

In addition, VW has agreed to pay up to $1.21 billion to compensate US VW brand dealers, pay more than $600 million to 44 US states, spend $2 billion on zero-emission vehicle promotion and infrastructure, and another $2.7 billion to offset diesel pollution.

It still faces billions of dollars in potential fines from the US Justice Department in its criminal probe into VW&#39;s cheating scandal, and must resolve the fate of larger vehicles that were not part of the initial $10 billion settlement.

VW and US regulators are in continuing discussions over whether the automaker should agree to buy back 85,000 larger 3.0-liter Porsche, Audi and VW vehicles that also exceeded US emission standards, and whether it should offer additional compensation to those owners.&nbsp; 
 
(Reuters)

Volkswagen will spend up to $16.7 billion to compensate US owners and address claims from states, federal regulators and dealers

Volkswagen AG, in another step to move past its costly diesel emissions cheating scandal, has agreed to pay $175 million to US lawyers suing the German automaker on behalf of the owners of 475,000 polluting vehicles, two people briefed on the agreement said on Friday. In August, the lawyers in the class action litigation sought up to $332.5 million in fees and costs for their work in a $10 billion settlement that gives US owners of 2.0 litre polluting cars the ability to sell back their vehicles to Volkswagen. The latest deal with the lawyers means VW has now agreed to spend up to $16.7 billion to compensate US owners and address claims from states, federal regulators and dealers arising from the "Dieselgate" scandal. The resolution of legal fees clears another hurdle as the world's No 2 automaker looks to resolve all of the outstanding aspects of a scandal that disrupted its global business, hurt its reputation and led to the ouster of its CEO last year. VW in September 2015 admitted using sophisticated secret software in its cars to cheat exhaust emissions tests, with millions of vehicles worldwide affected. The cheating allowed VW's US vehicles sold since 2009 to emit up to 40 times legally allowable pollution levels. The $175 million includes attorneys' fees and other costs, according to the sources, who spoke on condition of anonymity. Lawyers for the owners of polluting vehicles and a spokeswoman for Volkswagen declined to comment. US District Judge Charles Breyer on Tuesday is set to hold a hearing in San Francisco on whether to grant final approval of the vehicle owners' settlement announced in June, which would be the largest-ever automotive buy-back offer in the United States. VW has agreed to spend up to $10.033 billion to buy back the vehicles and compensate owners. It may also offer vehicle fixes if regulators approve. Under a timetable announced this summer, regulators could approve a fix for some 2015 VW diesel vehicles as early as next month. In addition, VW has agreed to pay up to $1.21 billion to compensate US VW brand dealers, pay more than $600 million to 44 US states, spend $2 billion on zero-emission vehicle promotion and infrastructure, and another $2.7 billion to offset diesel pollution. It still faces billions of dollars in potential fines from the US Justice Department in its criminal probe into VW's cheating scandal, and must resolve the fate of larger vehicles that were not part of the initial $10 billion settlement. VW and US regulators are in continuing discussions over whether the automaker should agree to buy back 85,000 larger 3.0-liter Porsche, Audi and VW vehicles that also exceeded US emission standards, and whether it should offer additional compensation to those owners. (Reuters)

Volkswagen 'Dieselgate': Company to pay $175 million to US lawyers

Volkswagen&#39;s MAN division plans to cut 1,400 jobs at its diesel-engine unit with the goal of improving cost savings by more than 450 million Euros ($504.23 million). 
 
Under the new plan called &#39;Basecamp 3000+&#39;, MAN&#39;s Diesel &amp; Turbo division aims to streamline internal processes, improve its cost structure and tackle development of the company&#39;s strategy and portfolio, it said. 
 
(Reuters)

The job cuts are aimed at improving cost savings by more than 450 million Euros ($504.23 million)

Volkswagen's MAN division plans to cut 1,400 jobs at its diesel-engine unit with the goal of improving cost savings by more than 450 million Euros ($504.23 million). Under the new plan called 'Basecamp 3000+', MAN's Diesel & Turbo division aims to streamline internal processes, improve its cost structure and tackle development of the company's strategy and portfolio, it said. (Reuters)

Volkswagen's MAN to cut 1,400 jobs at diesel-engine unit

Volkswagen division MAN will next year start selling heavy-duty commercial vehicles with new digital services to make its trucks more efficient, as VW looks to challenge rivals Daimler and Volvo AB. 
 
Truck makers are looking for new revenue from connected services that can make vehicles safer and more efficient. For large truck fleets, that can mean big savings. 
 
MAN has developed a cloud-based platform called RIO capable of connecting those in the freight transport business, including hauliers, dispatchers and receivers while feeding truck drivers traffic and navigation data, VW said on Tuesday. 
 
Through RIO, logistics firms will be able to better use vehicle capacity, reduce empty journeys, save fuel and avoid traffic jams, VW said in a statement published on the eve of the Hanover trucks show. 
 
&quot;This is good news for our customers because their business will become more profitable,&quot; VW trucks chief Andreas Renschler said. 
 
Europe&#39;s largest automaker has said it plans to invest hundreds of millions of euros,&nbsp;to expand digital tools for trucks, as it aims to catch up with Daimler and other rivals on developing smart logistics and connected trucks. 
 
Existing Daimler products include Fleetboard, launched in 2000. The software gathers data such as average speed and braking behaviour, allowing freight operators to analyse driving styles and ultimately save 10 to 15 percent on fuel, Daimler has said. 
 
RIO can be used by fleet operators, small and medium-sized hauliers and other firms, MAN digital chief Markus Lipinsky said, citing Continental and TomTom NV among initial partners. 
 
&quot;I&#39;m convinced that no technology company can by itself cope with the complexity of logistics business,&quot; Lipinsky said. &quot;That&#39;s why we&#39;re looking for contact with as many partners as possible.&quot; 
 
(Reuters)

MAN has developed a cloud-based platform called RIO capable of connecting those in the freight transport business

Volkswagen division MAN will next year start selling heavy-duty commercial vehicles with new digital services to make its trucks more efficient, as VW looks to challenge rivals Daimler and Volvo AB. Truck makers are looking for new revenue from connected services that can make vehicles safer and more efficient. For large truck fleets, that can mean big savings. MAN has developed a cloud-based platform called RIO capable of connecting those in the freight transport business, including hauliers, dispatchers and receivers while feeding truck drivers traffic and navigation data, VW said on Tuesday. Through RIO, logistics firms will be able to better use vehicle capacity, reduce empty journeys, save fuel and avoid traffic jams, VW said in a statement published on the eve of the Hanover trucks show. "This is good news for our customers because their business will become more profitable," VW trucks chief Andreas Renschler said. Europe's largest automaker has said it plans to invest hundreds of millions of euros, to expand digital tools for trucks, as it aims to catch up with Daimler and other rivals on developing smart logistics and connected trucks. Existing Daimler products include Fleetboard, launched in 2000. The software gathers data such as average speed and braking behaviour, allowing freight operators to analyse driving styles and ultimately save 10 to 15 percent on fuel, Daimler has said. RIO can be used by fleet operators, small and medium-sized hauliers and other firms, MAN digital chief Markus Lipinsky said, citing Continental and TomTom NV among initial partners. "I'm convinced that no technology company can by itself cope with the complexity of logistics business," Lipinsky said. "That's why we're looking for contact with as many partners as possible." (Reuters)

VW's MAN to sell trucks with new digital services from 2017

Audi&#39;s head of development, Stefan Knirsch, will be suspended this week for his involvement in the Volkswagen emissions scandal, Bild am Sonntag reported.&nbsp; 
 
Audi is owned by Volkswagen.&nbsp; 
 
Knirsch knew about the use of cheat software fitted to some of Audi&#39;s, Porsche&#39;s, and VW&#39;s 3.0 litre diesel engines but gave a false promise under oath, investigations by international law firm Jones Day revealed, the German paper said today.&nbsp; 
 
Audi has admitted that its 3.0 litre V6 diesel engine was fitted with the cheat software to dupe emission tests.&nbsp; 
 
The scandal hit last year when US authorities accused VW of installing the device in order to make its cars seem less polluting, reported AFP.&nbsp; 
 
The auto company has confessed that 11 million disesel cars across the world had been fitted with the device, inlcluding cars by other VW companies like Audi, Skoda, and Seat.&nbsp; 
 
The cars were recalled and customers in the US were offered a buy-back and compensation. No such compromise was made for the European market.&nbsp; 
 
Nearly a year later, Volkswagen is still coping with ongoing litigation.&nbsp; 
 
(WION with inputs from agencies) 
 
 
 
 
&nbsp;

Stefan Knirsch knew about the use of emissions-control software in VW's 3.0 litre diesel engines but gave a false promise under oath

Audi's head of development, Stefan Knirsch, will be suspended this week for his involvement in the Volkswagen emissions scandal, Bild am Sonntag reported. Audi is owned by Volkswagen. Knirsch knew about the use of cheat software fitted to some of Audi's, Porsche's, and VW's 3.0 litre diesel engines but gave a false promise under oath, investigations by international law firm Jones Day revealed, the German paper said today. Audi has admitted that its 3.0 litre V6 diesel engine was fitted with the cheat software to dupe emission tests. The scandal hit last year when US authorities accused VW of installing the device in order to make its cars seem less polluting, reported AFP. The auto company has confessed that 11 million disesel cars across the world had been fitted with the device, inlcluding cars by other VW companies like Audi, Skoda, and Seat. The cars were recalled and customers in the US were offered a buy-back and compensation. No such compromise was made for the European market. Nearly a year later, Volkswagen is still coping with ongoing litigation. (WION with inputs from agencies)

Audi R&D head to be suspended over VW emissions scandal: Bild am Sonntag

The European Commission has found that Volkswagen broke consumer laws in 20 European Union countries by cheating on emissions tests, German daily Die Welt reported, citing Commission sources. 
 
Consumer Sales and Guarantees Directive are among the laws broken by the German automaker, which prohibits companies from touting exaggerated environmental claims in their sales pitches, and the Unfair Commercial Practises Directive, both of which apply across the EU, the paper said. 
 
The European Commission said Industry Commissioner Elzbieta Bienkowska has repeatedly invited Volkswagen to consider compensating consumers voluntarily, but the response from the carmaker was not very encouraging. 
 
It also added that it was for national courts to determine whether consumers were legally entitled to compensation. 
 
A Commission spokeswoman said Consumer Commissioner Vera Jourova had written to consumer associations across the EU to collect information in order to ensure that consumers are treated fairly.&nbsp; 
 
The spokeswoman said, &quot;She will meet relevant representatives in Brussels this week.&rdquo; 
 
Jourova has been working with consumer groups to pressure Volkswagen to compensate clients in Europe as it has in the United States over the diesel emissions scandal last year. 
 
In September last year, the Environmental Protection Agency (EPA) found that many VW cars in America had a &quot;defeat device&quot;, or software, in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results. 
 
Volkswagen has pledged billions of euros to compensate owners of VW diesel-powered cars&nbsp;but has so far rejected calls for similar payments for the 8.5 million affected vehicles in Europe, where different legal rules weaken the chances of winning a pay out. 
 
Jourova told Die Welt that she was still analysing feedback from the member states. 
 
Die Welt cited sources as saying that Jourova would meet with representatives of the consumer protection groups in the coming days to discuss a strategy for claiming compensation from Volkswagen. 
 
(WION with inputs from Reuters)

It said the industry commissioner has repeatedly invited VW to compensate consumers voluntarily but the response was not encouraging

The European Commission has found that Volkswagen broke consumer laws in 20 European Union countries by cheating on emissions tests, German daily Die Welt reported, citing Commission sources. Consumer Sales and Guarantees Directive are among the laws broken by the German automaker, which prohibits companies from touting exaggerated environmental claims in their sales pitches, and the Unfair Commercial Practises Directive, both of which apply across the EU, the paper said. The European Commission said Industry Commissioner Elzbieta Bienkowska has repeatedly invited Volkswagen to consider compensating consumers voluntarily, but the response from the carmaker was not very encouraging. It also added that it was for national courts to determine whether consumers were legally entitled to compensation. A Commission spokeswoman said Consumer Commissioner Vera Jourova had written to consumer associations across the EU to collect information in order to ensure that consumers are treated fairly. The spokeswoman said, "She will meet relevant representatives in Brussels this week.” Jourova has been working with consumer groups to pressure Volkswagen to compensate clients in Europe as it has in the United States over the diesel emissions scandal last year. In September last year, the Environmental Protection Agency (EPA) found that many VW cars in America had a "defeat device", or software, in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results. Volkswagen has pledged billions of euros to compensate owners of VW diesel-powered cars but has so far rejected calls for similar payments for the 8.5 million affected vehicles in Europe, where different legal rules weaken the chances of winning a pay out. Jourova told Die Welt that she was still analysing feedback from the member states. Die Welt cited sources as saying that Jourova would meet with representatives of the consumer protection groups in the coming days to discuss a strategy for claiming compensation from Volkswagen. (WION with inputs from Reuters)

EU finds Volkswagen broke consumer laws in 20 countries: Report

Embattled automaker Volkswagen will hold talks on Monday with two component suppliers, in a bid to end a stand-off over car parts deliveries that has severely disrupted production at the German giant. 
 
ES Automobilguss, which supplies cast gearbox components, and Cartrim, which makes seat covers, suspended their deliveries in August over a legal dispute with Volkswagen. 
 
VW secured temporary injunctions on August 12 ordering the two suppliers to resume deliveries. 
 
But the part suppliers have appealed the decision, forcing VW to slash work hours at key factories, and even suspend manufacture of the popular Golf model at its main plant in Wolfsburg, northern Germany. 
 
In a bid to resolve the stand-off, the disputing parties held talks into the early hours of Saturday, a VW spokesman said, adding that they decided &quot;jointly to postpone talks to Monday&quot;. 
 
The group &quot;wishes to achieve a result through negotiations&quot;, although it may also be obliged to pursue legal means, added the spokesman. 
 
The parts suppliers accuse VW of having cut several contracts with no advance warning or compensation, leaving them no choice but to suspend deliveries to protect their own workers. 
 
According to media reports, VW has been seeking concessions from all of its suppliers, amounting to several billion Euros. 
 
Volkswagen, which also owns brands from luxury Audi to lower-end Skoda, is still in the throes of its biggest-ever crisis after it admitted in September 2015 to the massive emissions cheating scandal affected 11 million diesel engines. 
 
The revelation slashed the carmaker&#39;s share price by 40 per cent, a drop in market value of 25 billion Euros, in two days. 
 
VW has had to set aside billions of dollars to settle damage claims from car owners and to retrofit the affected cars. 
 
It secured preliminary approval for a $14.7-billion settlement from a California judge in July. 
 
But several German states are examining legal action to claw back losses to pension schemes and other holders of VW shares. 
 
The company may also be forced to pay out for environmental damages in cases brought by several US states. 
 
(AFP)

The move comes in a bid to end a stand-off over car parts deliveries that has severely disrupted production at the German giant

Embattled automaker Volkswagen will hold talks on Monday with two component suppliers, in a bid to end a stand-off over car parts deliveries that has severely disrupted production at the German giant. ES Automobilguss, which supplies cast gearbox components, and Cartrim, which makes seat covers, suspended their deliveries in August over a legal dispute with Volkswagen. VW secured temporary injunctions on August 12 ordering the two suppliers to resume deliveries. But the part suppliers have appealed the decision, forcing VW to slash work hours at key factories, and even suspend manufacture of the popular Golf model at its main plant in Wolfsburg, northern Germany. In a bid to resolve the stand-off, the disputing parties held talks into the early hours of Saturday, a VW spokesman said, adding that they decided "jointly to postpone talks to Monday". The group "wishes to achieve a result through negotiations", although it may also be obliged to pursue legal means, added the spokesman. The parts suppliers accuse VW of having cut several contracts with no advance warning or compensation, leaving them no choice but to suspend deliveries to protect their own workers. According to media reports, VW has been seeking concessions from all of its suppliers, amounting to several billion Euros. Volkswagen, which also owns brands from luxury Audi to lower-end Skoda, is still in the throes of its biggest-ever crisis after it admitted in September 2015 to the massive emissions cheating scandal affected 11 million diesel engines. The revelation slashed the carmaker's share price by 40 per cent, a drop in market value of 25 billion Euros, in two days. VW has had to set aside billions of dollars to settle damage claims from car owners and to retrofit the affected cars. It secured preliminary approval for a $14.7-billion settlement from a California judge in July. But several German states are examining legal action to claw back losses to pension schemes and other holders of VW shares. The company may also be forced to pay out for environmental damages in cases brought by several US states. (AFP)

Volkswagen to hold talks with suppliers on production-crippling dispute

Federal investigators probing Volkswagen&#39;s diesel emissions cheating scandal have uncovered evidence of criminal wrongdoing, The Wall Street Journal reported Monday, citing sources familiar with the matter. 
 
The justice department is now negotiating a settlement which may involve significant financial penalties for the company, the newspaper said. 
 
The German automaker has worked swiftly to put the emissions scandal behind it, reaching multi-billion-dollar civil settlements with most US states and offering to compensate owners and fix deficient automobiles. 
 
But, with the possibility of criminal sanctions, Monday&#39;s news added a grave new dimension to the company&#39;s travails. 
 
Prosecutors had yet to decide on specific charges, according to the Journal. 
 
It said the department is weighing the alternatives of requiring a guilty plea from the company, or offering it a deferred prosecution agreement, which would require certain corrective behaviour by the company over time after which charges would be dropped. 
 
A Justice Department spokesman declined to comment on the report. 
 
In a statement, Volkswagen said talks were continuing with federal and state authorities, including the Justice Department. 
 
&quot;Volkswagen is committed to earning back the trust of our customers, dealers, regulators and the American public.&quot; 
 
The company admitted last year to installing cheating devices on nearly 600,000 diesel-powered vehicles in the US and as many as 11 million worldwide. 
 
Cars were configured to reduce harmful nitrogen oxide emissions during official pollution tests, while allowing emissions of up to 40 times the legal limit during actual driving. 
 
The company, which also markets Audi and Porsche vehicles, settled civil cases in June over cheat devices on 2.0 liter cars in an agreement valued at $14.7 billion. 
 
It still needs to settle complaints about its 3.0 liter diesel cars. 
 
Lawsuits filed last month by the attorneys general of New York and Massachusetts implicated senior company executives in the emissions cheating, suggesting a current and former CEO may have been aware of it. 
 
Both men, current CEO Matthias Mueller and his predecessor Martin Winterkorn, have denied personal responsibility for wrongdoing. 
 
(AFP)&nbsp; 
 
&nbsp;

The justice department is now negotiating a settlement which may involve significant financial penalties for the company, WSJ said?

Federal investigators probing Volkswagen's diesel emissions cheating scandal have uncovered evidence of criminal wrongdoing, The Wall Street Journal reported Monday, citing sources familiar with the matter. The justice department is now negotiating a settlement which may involve significant financial penalties for the company, the newspaper said. The German automaker has worked swiftly to put the emissions scandal behind it, reaching multi-billion-dollar civil settlements with most US states and offering to compensate owners and fix deficient automobiles. But, with the possibility of criminal sanctions, Monday's news added a grave new dimension to the company's travails. Prosecutors had yet to decide on specific charges, according to the Journal. It said the department is weighing the alternatives of requiring a guilty plea from the company, or offering it a deferred prosecution agreement, which would require certain corrective behaviour by the company over time after which charges would be dropped. A Justice Department spokesman declined to comment on the report. In a statement, Volkswagen said talks were continuing with federal and state authorities, including the Justice Department. "Volkswagen is committed to earning back the trust of our customers, dealers, regulators and the American public." The company admitted last year to installing cheating devices on nearly 600,000 diesel-powered vehicles in the US and as many as 11 million worldwide. Cars were configured to reduce harmful nitrogen oxide emissions during official pollution tests, while allowing emissions of up to 40 times the legal limit during actual driving. The company, which also markets Audi and Porsche vehicles, settled civil cases in June over cheat devices on 2.0 liter cars in an agreement valued at $14.7 billion. It still needs to settle complaints about its 3.0 liter diesel cars. Lawsuits filed last month by the attorneys general of New York and Massachusetts implicated senior company executives in the emissions cheating, suggesting a current and former CEO may have been aware of it. Both men, current CEO Matthias Mueller and his predecessor Martin Winterkorn, have denied personal responsibility for wrongdoing. (AFP)

US uncovers evidence of criminality in Volkswagen's emissions probe: Report?

Volkswagen has been slapped with a five-million-Euro ($5.5 million) fine in Italy over the massive engine-fixing scandal, the Italian competition authority said on Monday. 
 
The German carmaker was handed the fine for &quot;improper business practices&quot; after it installed emissions-cheating software in 11 million diesel engines worldwide in a scandal which broke last year, dubbed &quot;dieselgate&quot;. 
 
The antitrust watchdog said the fine related to the marketing in Italy since 2009 of vehicles that tricked pollution tests. 
 
Volkswagen, which owns 12 brands in all, from VW to Audi, Porsche, Seat, and Lamborghini, admitted in September that it had installed software in the vehicles that tricked US emissions tests into showing the cars met environmental standards. 
 
The device switched off after testing, enabling the vehicles to spew up to 40 times the permitted amounts of nitrogen oxides. The still incalculable costs of the affair, including regulatory fines and legal costs, pushed VW into the red for the first time in more than 20 years last year when it booked a loss of 1.6 billion Euros. 
 
In June it agreed to pay out $14.7 billion in a settlement with US authorities and car owners.&nbsp; 
 
(AFP) 
 
Keywords- VW scandal, VW engine-fixing scandal, Volkswagen emissions&nbsp;scandal, VW fined by Italy watchdog, VW fined $5.5 million, Italy watchdog fines VW with 5 million Euros

The fine was for the emissions-cheating software the German carmaker had installed in 11 million of its diesel cars worldwide

Volkswagen has been slapped with a five-million-Euro ($5.5 million) fine in Italy over the massive engine-fixing scandal, the Italian competition authority said on Monday. The German carmaker was handed the fine for "improper business practices" after it installed emissions-cheating software in 11 million diesel engines worldwide in a scandal which broke last year, dubbed "dieselgate". The antitrust watchdog said the fine related to the marketing in Italy since 2009 of vehicles that tricked pollution tests. Volkswagen, which owns 12 brands in all, from VW to Audi, Porsche, Seat, and Lamborghini, admitted in September that it had installed software in the vehicles that tricked US emissions tests into showing the cars met environmental standards. The device switched off after testing, enabling the vehicles to spew up to 40 times the permitted amounts of nitrogen oxides. The still incalculable costs of the affair, including regulatory fines and legal costs, pushed VW into the red for the first time in more than 20 years last year when it booked a loss of 1.6 billion Euros. In June it agreed to pay out $14.7 billion in a settlement with US authorities and car owners. (AFP) Keywords- VW scandal, VW engine-fixing scandal, Volkswagen emissions scandal, VW fined by Italy watchdog, VW fined $5.5 million, Italy watchdog fines VW with 5 million Euros

Volkswagen fined $5.5 million in Italy

Volkswagen AG&#39;s $14.7 billion settlement of its US diesel emissions cheating scandal cleared another legal hurdle yesterday, as a federal judge gave the automaker preliminary approval to buy back up to 475,000 vehicles. 
 
US District Judge Charles Breyer in San Francisco set an October 18 hearing for final approval. Preliminary approval means Volkswagen will soon enable owners of the 2.0 liter diesel-powered vehicles to access a website to learn how much they are eligible to receive. 
 
The settlement, announced in June, centers around the largest-ever automotive buy-back offer in the United States. Coupled with possible vehicle repairs and payments to governmental agencies, that component of the settlement carries a $10 billion price tag. 
 
Volkswagen said it continues to work with regulators to get fix approvals. VW told dealers last week that a planned fix could consist of software upgrades and some new catalytic converters. 
 
Volkswagen also plans to offer a new proposal to fix 85,000 polluting 3.0 liter vehicles after regulators rejected an earlier plan, a Justice Department lawyer said on Tuesday. Earlier this month, the California Air Resources Board rejected as insufficient a plan to fix the vehicles, which include VW and Audi luxury cars from model years 2009-2016. 
 
At the hearing, Justice Department lawyer Joshua Van Eaton said the German automaker had been meeting with regulators in recent weeks and planned to offer a new fix proposal in August. 
 
Breyer said he wants another update on the 3.0 liter vehicle talks at an August 25 hearing. 
 
German carmaker set to make hirings to process claims&nbsp; 
 
VW plans to hire between 250 to 300 people in Michigan to process settlement claims and will be overseen full-time by 40 VW Group of America employees. If needed VW could double the number of people it is hiring to process claims, said VW lawyer Sharon Nelles. VW is contracting for storage space to house vehicles it repurchases, she said. 
 
German carmaker admitted in September that it installed secret software that allowed US vehicles to emit up to 40 times legally allowable pollution. 
 
Under the Justice Department deal, VW will provide $2 billion over 10 years to fund programs to promote construction of electric vehicle charging infrastructure and development of zero-emission ride-sharing fleets and other efforts. 
 
VW also agreed to put up $2.7 billion over three years to enable government and tribal agencies to replace old buses or to fund infrastructure to reduce diesel emissions. 
 
Separately, VW reached a settlement with 44 US states, the District of Columbia and Puerto Rico that will cost at least $600 million, bringing the total to as much as $15.3 billion. 
 
Last week, three states filed new lawsuits, saying that VW violated state environmental laws and seeking hundreds of millions in additional penalties. 
 
(Reuters)&nbsp; 
&nbsp;

The settlement, announced in June, centers around the largest-ever automotive buy-back offer in the United States?

Volkswagen AG's $14.7 billion settlement of its US diesel emissions cheating scandal cleared another legal hurdle yesterday, as a federal judge gave the automaker preliminary approval to buy back up to 475,000 vehicles. US District Judge Charles Breyer in San Francisco set an October 18 hearing for final approval. Preliminary approval means Volkswagen will soon enable owners of the 2.0 liter diesel-powered vehicles to access a website to learn how much they are eligible to receive. The settlement, announced in June, centers around the largest-ever automotive buy-back offer in the United States. Coupled with possible vehicle repairs and payments to governmental agencies, that component of the settlement carries a $10 billion price tag. Volkswagen said it continues to work with regulators to get fix approvals. VW told dealers last week that a planned fix could consist of software upgrades and some new catalytic converters. Volkswagen also plans to offer a new proposal to fix 85,000 polluting 3.0 liter vehicles after regulators rejected an earlier plan, a Justice Department lawyer said on Tuesday. Earlier this month, the California Air Resources Board rejected as insufficient a plan to fix the vehicles, which include VW and Audi luxury cars from model years 2009-2016. At the hearing, Justice Department lawyer Joshua Van Eaton said the German automaker had been meeting with regulators in recent weeks and planned to offer a new fix proposal in August. Breyer said he wants another update on the 3.0 liter vehicle talks at an August 25 hearing. German carmaker set to make hirings to process claims VW plans to hire between 250 to 300 people in Michigan to process settlement claims and will be overseen full-time by 40 VW Group of America employees. If needed VW could double the number of people it is hiring to process claims, said VW lawyer Sharon Nelles. VW is contracting for storage space to house vehicles it repurchases, she said. German carmaker admitted in September that it installed secret software that allowed US vehicles to emit up to 40 times legally allowable pollution. Under the Justice Department deal, VW will provide $2 billion over 10 years to fund programs to promote construction of electric vehicle charging infrastructure and development of zero-emission ride-sharing fleets and other efforts. VW also agreed to put up $2.7 billion over three years to enable government and tribal agencies to replace old buses or to fund infrastructure to reduce diesel emissions. Separately, VW reached a settlement with 44 US states, the District of Columbia and Puerto Rico that will cost at least $600 million, bringing the total to as much as $15.3 billion. Last week, three states filed new lawsuits, saying that VW violated state environmental laws and seeking hundreds of millions in additional penalties. (Reuters)

VW emission scandal: Car giant clears hurdle with $14.7 billion settlement

German carmaker Volkswagen will suspend sales of most of its models in South Korea from July 25 as pressure builds on the company over its falsified emissions tests. 
 
South Korea is the latest country forcing Volkswagen to take drastic measures to repair its image since the carmaker admitted to cheating US diesel emissions tests and said that up to 11 million vehicles worldwide could be fitted with illegal software. 
 
&quot;We have decided to suspend sales of the affected models to reduce confusion among dealers and customers,&quot; a spokesman for Volkswagen&#39;s South Korean business said. 
 
The move comes ahead of an environment ministry review this month or in early August on whether to revoke certification of the 32 vehicle types offered for sale by Volkswagen and its Audi brand, which would lead to a sales ban. Volkwagen is due to present its case on July 25. 
 
South Korean prosecutors last month issued the first warrant for the arrest of a VW executive in connection with the emissions scandal. 
 
Globally, the company has already set aside about 16.2 billion euros ($17.85 billion) to cover the cost of the scandal and this week said that it had set aside a further 2.2 billion euros. 
 
&quot;The latest costs show that the dieselgate scandal is far from dealt with,&quot; NordLB analyst Frank Schwope said. 
 
Schwope raised his estimate for the cost of the scandal to between 25 billion euros and 35 billion euros, up from a range of 20 billion euros to 30 billion euros. 
 
Volkswagen has been struggling with a sales slump in South Korea, Asia&#39;s second-biggest diesel car market. Sales of VW-branded cars in South Korea slumped 33 per cent to 12,463 vehicles in the first half of this year, industry association data shows. 
 
The group&#39;s top-selling vehicles in Korea last year were the Volkswagen Tiguan 2.0 TDI BlueMotion, with 9,467 vehicles, and the Audi A6 TDI, with 7,049 vehicles, according to the Korea Automobile Importers and Distributors Association. 
 
German car sales in South Korea have soared since a 2011 free-trade deal eliminated duty on vehicles imported from Europe. 
 
(Reuters)&nbsp;

The German carmaker has been struggling with a sales slump in South Korea, Asia's second-biggest diesel car market

German carmaker Volkswagen will suspend sales of most of its models in South Korea from July 25 as pressure builds on the company over its falsified emissions tests. South Korea is the latest country forcing Volkswagen to take drastic measures to repair its image since the carmaker admitted to cheating US diesel emissions tests and said that up to 11 million vehicles worldwide could be fitted with illegal software. "We have decided to suspend sales of the affected models to reduce confusion among dealers and customers," a spokesman for Volkswagen's South Korean business said. The move comes ahead of an environment ministry review this month or in early August on whether to revoke certification of the 32 vehicle types offered for sale by Volkswagen and its Audi brand, which would lead to a sales ban. Volkwagen is due to present its case on July 25. South Korean prosecutors last month issued the first warrant for the arrest of a VW executive in connection with the emissions scandal. Globally, the company has already set aside about 16.2 billion euros ($17.85 billion) to cover the cost of the scandal and this week said that it had set aside a further 2.2 billion euros. "The latest costs show that the dieselgate scandal is far from dealt with," NordLB analyst Frank Schwope said. Schwope raised his estimate for the cost of the scandal to between 25 billion euros and 35 billion euros, up from a range of 20 billion euros to 30 billion euros. Volkswagen has been struggling with a sales slump in South Korea, Asia's second-biggest diesel car market. Sales of VW-branded cars in South Korea slumped 33 per cent to 12,463 vehicles in the first half of this year, industry association data shows. The group's top-selling vehicles in Korea last year were the Volkswagen Tiguan 2.0 TDI BlueMotion, with 9,467 vehicles, and the Audi A6 TDI, with 7,049 vehicles, according to the Korea Automobile Importers and Distributors Association. German car sales in South Korea have soared since a 2011 free-trade deal eliminated duty on vehicles imported from Europe. (Reuters)

Falsified emission tests: Volkswagen halts sales in South Korea ahead of ministry review

Volkswagen AG will pay an additional $86 million in penalties to California over its emissions scandal, on top of a settlement of $14.7 billion the automaker reached with US officials last week, state attorney general Kamala Harris said in a statement on Thursday. 
 
The office of Harris, a Democrat, said the $86 million in civil penalties resolved certain claims California officials made against Volkswagen under the state&#39;s unfair competition law as well as under federal law. 
 
&quot;We must conserve and protect our environment for future generations and deliver swift and certain consequences to those who break the law and pollute our air,&quot; said Harris, who is running for a seat in the US Senate. 
 
The scandal has disrupted Volkswagen&#39;s global business and sullied its reputation. 
 
The latest settlement between officials for Volkswagen and California, the nation&#39;s most populous state, provides for $76 million to be paid to Harris&#39; office to defray costs relating to investigation and litigation of the emissions scandal, according to court documents. 
 
The other $10 million will be dedicated to grants for government agencies and universities, to be used in part to study technology that can help detect so-called &quot;defeat devices&quot;, which on Volkswagen cars produced false results during diesel emissions tests, Harris&#39; office said. 
 
Volkswagen, the world&#39;s second-biggest automaker, has admitted it used sophisticated secret software to cheat exhaust emissions tests, deceiving regulators and customers about pollution from its diesel engines. 
 
&quot;Today&rsquo;s filing formalises the agreement with the California attorney general announced last week to resolve consumer protection claims related to the diesel matter in California,&quot; Volkswagen said in a statement. 
 
The company had previously said it would pay $603 million to resolve litigation with most US states, the District of Columbia and Puerto Rico, on top of the $14.7 billion settlement with federal officials.&nbsp; 
 
Under that larger settlement involving the US department of justice, the company will buy back or potentially fix about a half-million polluting diesel cars and set up environmental and consumer compensation funds. 
 
(Reuters)

VW admitted to using secret software to cheat exhaust emissions tests, deceiving regulators and customers about ultra high pollution levels

Volkswagen AG will pay an additional $86 million in penalties to California over its emissions scandal, on top of a settlement of $14.7 billion the automaker reached with US officials last week, state attorney general Kamala Harris said in a statement on Thursday. The office of Harris, a Democrat, said the $86 million in civil penalties resolved certain claims California officials made against Volkswagen under the state's unfair competition law as well as under federal law. "We must conserve and protect our environment for future generations and deliver swift and certain consequences to those who break the law and pollute our air," said Harris, who is running for a seat in the US Senate. The scandal has disrupted Volkswagen's global business and sullied its reputation. The latest settlement between officials for Volkswagen and California, the nation's most populous state, provides for $76 million to be paid to Harris' office to defray costs relating to investigation and litigation of the emissions scandal, according to court documents. The other $10 million will be dedicated to grants for government agencies and universities, to be used in part to study technology that can help detect so-called "defeat devices", which on Volkswagen cars produced false results during diesel emissions tests, Harris' office said. Volkswagen, the world's second-biggest automaker, has admitted it used sophisticated secret software to cheat exhaust emissions tests, deceiving regulators and customers about pollution from its diesel engines. "Today’s filing formalises the agreement with the California attorney general announced last week to resolve consumer protection claims related to the diesel matter in California," Volkswagen said in a statement. The company had previously said it would pay $603 million to resolve litigation with most US states, the District of Columbia and Puerto Rico, on top of the $14.7 billion settlement with federal officials. Under that larger settlement involving the US department of justice, the company will buy back or potentially fix about a half-million polluting diesel cars and set up environmental and consumer compensation funds. (Reuters)

Volkswagen to pay $86 million in penalties to California over emissions

Volkswagen&#39;s (VW) settlement with nearly 500,000 US&nbsp;diesel car owners and government regulators over polluting vehicles is valued at more than $15 billion, two sources briefed on the matter said on Monday.

The settlement, to be announced on Tuesday (June 28) in Washington, includes $10.033 billion to offer buybacks to owners of about 475,000 polluting vehicles and nearly $5 billion in funds to offset excess diesel emissions and boost zero emission vehicles, the sources said.

A separate settlement with nearly all US&nbsp;state attorneys general over excess diesel emissions will be announced on Tuesday and is expected to be more than $500 million. This&nbsp;would&nbsp;push the total to over $15 billion, a separate source briefed on the matter said.

Spokeswomen for the US&nbsp;environmental protection agency and Volkswagen declined to comment.

&quot;The settlement for Volkswagen is really the first step that they&#39;ve made publicly after the admission of fault they made publicly in September of last year,&quot; said Patrick Min, Senior Industry Insights Analyst with TrueCar. &quot;So the amount of $15 billion, far and away the largest amount in US&nbsp;history is really the first step in terms of setting aside money in order to repair vehicles or actually buy them back from owners.&quot;

Speaking on condition of anonymity the first sources said that owners of 2.0 litre diesel VW 2009-2015 cars will receive at least $5,100 compensation along with the estimated value of the vehicles as of September 2015, before the scandal erupted. Some owners will get as much as $10,000 in compensation, the first sources said, depending on the value of the car.

The $10.033 billion is the maximum VW could pay if it had to buyback all vehicles, but the actual amount VW will pay could be significantly less if a large number of owners take buybacks.

Prior owners will get half of current owners, while people who leased cars will also get compensation, said the first sources.

Owners would also receive the same compensation if they choose to have the vehicles repaired, assuming U.S. regulators approve a fix at a later date.&nbsp;

&quot;This is just the tip of the iceberg in terms of what they can expect from other follow-on lawsuits, from certain states such as California that are going to go for even more action,&quot; said Min, on what further legal action VW may be facing. &quot;The impacts are going to continue further with respect to future product development and what Volkswagen can achieve with&nbsp;a diminished budget going forward.&quot;

The settlement includes $2.7 billion in funds to offset excess diesel emissions and $2 billion in VW investments in green energy and zero emission vehicle efforts, the first sources said. The diesel offset fund could rise if VW has not fixed or bought back 85 percent of the vehicles by mid-2019, the first sources said.

The $2 billion in green energy and zero emission efforts will be spent over 10 years, the first sources said, and will include zero emission vehicle infrastructure.&nbsp;

The settlement, the largest ever automotive buyback offer in U.S. history and most expensive auto industry scandal, stems from the German automaker&#39;s admission in September 2015 that it intentionally misled regulators by installing secret software that allowed U.S. vehicles to emit up to 40 times legally allowable pollution.

VW still must reach agreement with regulators on whether it will offer to buyback 85,000 larger 3.0 liter Porsche, Audi&nbsp;and SUVs that emitted up to nine times legally allowable pollution and how much it may face in civil fines for admitting to violating the Clean Air Act.

Reuters reported earlier the initial VW settlement would not include civil penalties under the U.S. Clean Air Act or address about 85,000 larger 3.0 litre Audi, Porsche and VW vehicles that emitted less pollution than 2.0 litre vehicles. A deal covering the 3.0 litre vehicles may still be months away.

The settlement does not address lawsuits from investors or a criminal investigation by the Justice Department.

Owners will have until December 2018 to decide whether to sell back vehicles or opt for&nbsp;fixes that may not eliminate all excess emissions.

VW cannot resell or export the vehicles bought back unless EPA approves a fix, Reuters reported last week.

VW, the world&#39;s second largest automaker, has seen U.S. VW brand sales suffer in the wake of the crisis. VW brand sales are down 13 per cent in the United States in 2016, while sales of its luxury Audi and Porsche units have risen. 
 
(Reuters)

The company had lied on emissions tests, will offer buybacks to nearly 475,000 diesel car owners in the States

Volkswagen's (VW) settlement with nearly 500,000 US diesel car owners and government regulators over polluting vehicles is valued at more than $15 billion, two sources briefed on the matter said on Monday. The settlement, to be announced on Tuesday (June 28) in Washington, includes $10.033 billion to offer buybacks to owners of about 475,000 polluting vehicles and nearly $5 billion in funds to offset excess diesel emissions and boost zero emission vehicles, the sources said. A separate settlement with nearly all US state attorneys general over excess diesel emissions will be announced on Tuesday and is expected to be more than $500 million. This would push the total to over $15 billion, a separate source briefed on the matter said. Spokeswomen for the US environmental protection agency and Volkswagen declined to comment. "The settlement for Volkswagen is really the first step that they've made publicly after the admission of fault they made publicly in September of last year," said Patrick Min, Senior Industry Insights Analyst with TrueCar. "So the amount of $15 billion, far and away the largest amount in US history is really the first step in terms of setting aside money in order to repair vehicles or actually buy them back from owners." Speaking on condition of anonymity the first sources said that owners of 2.0 litre diesel VW 2009-2015 cars will receive at least $5,100 compensation along with the estimated value of the vehicles as of September 2015, before the scandal erupted. Some owners will get as much as $10,000 in compensation, the first sources said, depending on the value of the car. The $10.033 billion is the maximum VW could pay if it had to buyback all vehicles, but the actual amount VW will pay could be significantly less if a large number of owners take buybacks. Prior owners will get half of current owners, while people who leased cars will also get compensation, said the first sources. Owners would also receive the same compensation if they choose to have the vehicles repaired, assuming U.S. regulators approve a fix at a later date. "This is just the tip of the iceberg in terms of what they can expect from other follow-on lawsuits, from certain states such as California that are going to go for even more action," said Min, on what further legal action VW may be facing. "The impacts are going to continue further with respect to future product development and what Volkswagen can achieve with a diminished budget going forward." The settlement includes $2.7 billion in funds to offset excess diesel emissions and $2 billion in VW investments in green energy and zero emission vehicle efforts, the first sources said. The diesel offset fund could rise if VW has not fixed or bought back 85 percent of the vehicles by mid-2019, the first sources said. The $2 billion in green energy and zero emission efforts will be spent over 10 years, the first sources said, and will include zero emission vehicle infrastructure. The settlement, the largest ever automotive buyback offer in U.S. history and most expensive auto industry scandal, stems from the German automaker's admission in September 2015 that it intentionally misled regulators by installing secret software that allowed U.S. vehicles to emit up to 40 times legally allowable pollution. VW still must reach agreement with regulators on whether it will offer to buyback 85,000 larger 3.0 liter Porsche, Audi and SUVs that emitted up to nine times legally allowable pollution and how much it may face in civil fines for admitting to violating the Clean Air Act. Reuters reported earlier the initial VW settlement would not include civil penalties under the U.S. Clean Air Act or address about 85,000 larger 3.0 litre Audi, Porsche and VW vehicles that emitted less pollution than 2.0 litre vehicles. A deal covering the 3.0 litre vehicles may still be months away. The settlement does not address lawsuits from investors or a criminal investigation by the Justice Department. Owners will have until December 2018 to decide whether to sell back vehicles or opt for fixes that may not eliminate all excess emissions. VW cannot resell or export the vehicles bought back unless EPA approves a fix, Reuters reported last week. VW, the world's second largest automaker, has seen U.S. VW brand sales suffer in the wake of the crisis. VW brand sales are down 13 per cent in the United States in 2016, while sales of its luxury Audi and Porsche units have risen. (Reuters)

Volkswagen will settle for over 15 billion US dollars: Sources

The boss of German auto giant Volkswagen, on Wednesday, issued an apology to angry shareholders over the emissions cheating scandal that has plunged the group into an unprecedented crisis. 
 
Facing an annual general meeting for the first time since the scandal erupted in September, Matthias Mueller said: &quot;On behalf of the Volkswagen Group and everyone who works here, I apologise to you shareholders for your trust in Volkswagen being betrayed. 
 
&quot;This misconduct goes against everything that Volkswagen stands for,&quot; he added nine months after the start of the &quot;Dieselgate&quot; affair, when it emerged VW had installed emissions-cheating software into 11 million diesel engines worldwide. 
 
Volkswagen is still far from drawing a line under the scandal, with the costs of the affair still incalculable, while it remains unclear if VW&#39;s own internal investigation will pinpoint the major culprits behind the scam. 
 
The auto giant, which owns 12 brands ranging from Volkswagen and Porsche to Audi and SEAT, still faces a myriad of regulatory fines and lawsuits from customers and shareholders. 
 
Shareholders are expected to use the annual general meeting in the northern city of Hanover to let off steam at the way management has handled the affair. 
 
Two days ahead of the meeting, prosecutors provided more fodder to the irate shareholders when they said they were investigating former VW boss Martin Winterkorn for having allegedly manipulated the market by holding back information about emissions cheating at the car giant. 
 
A second former member of the board was also under probe, prosecutors said, without giving the individual&#39;s name, but a Volkswagen spokesman told AFP that the suspect was Herbert Diess -- who is in charge of the VW brand. 
 
Listed companies are required to disclose information that could affect market prices immediately. 
 
But VW complied with its disclosure obligation only on September 22, 2015, prosecutors said, four days after US regulators went public that they were charging the company for emissions cheating. 
 
Crisis has opened doors 
 
The allegations struck at the heart of shareholders&#39; misgivings, as they have since early on in the scandal also accused management of dragging their feet in informing them about the scam, which led to a stunning 40-percent drop in the company&#39;s share price last autumn. 
 
The stock has since recovered somewhat, but is still 26 per cent below the levels before the scandal broke last September, and the company&#39;s finances also remain weak. 
 
After it was forced to set aside 16 billion Euros ($18 billion) in provisions to cover the costs of the affair so far, it sank to a net loss of 1.6 billion Euros, its first loss in two decades. 
 
Giving an update of the company&#39;s internal investigation into the affair, chairman Hans Dieter Poetsch said some 550 interviews had been carried out by the US consultants charged with the probe, Jones Day. 
 
Nevertheless, a number of shareholder lobby groups are demanding special enquiries into who should be held responsible for the affair, arguing that Jones Day is not sufficiently independent. 
 
Seeking to reassure shareholders of management&#39;s commitment to regain their trust, Mueller said the crisis could eventually prove to be &quot;beneficial&quot;. 
 
&quot;The crisis has also opened doors. It forced us to strengthen and speed up overdue changes, and to set new priorities. To turn this crisis into an opportunity has been my goal from the beginning,&quot; he said. 
 
Mueller hinted in a newspaper interview on Tuesday that the car giant could abandon diesel engine technology in the wake of the scandal. 
 
&quot;We have to ask ourselves whether... we want to spend more money on the further development of diesel,&quot; Mueller told the business daily Handelsblatt, promising that VW would take a &quot;fundamental&quot; look at the issue. 
 
The move appeared to be in line with the group&#39;s plans to reposition itself as a leading player in environmentally sustainable modes of transport, with more than 30 all-electric models to be unveiled by 2025. 
 
Regardless of any doubts, small shareholders may have over VW&#39;s path forward, the power they wield remains limited. 
 
They hold just 11 per cent of the voting rights in VW, while the founding families Porsche and Piech hold 52 per cent, the regional state of Lower Saxony 20 per cent and the state of Qatar 17 per cent. 
 
Speaking for Qatar, Hessa Al Jaber said she believes that VW&#39;s management &quot;genuinely wants to turn the company around.&quot; 
 
(AFP)

The auto giant, which owns 12 brands ranging from Volkswagen and Porsche to Audi and SEAT, faces a myriad of regulatory fines and lawsuits

The boss of German auto giant Volkswagen, on Wednesday, issued an apology to angry shareholders over the emissions cheating scandal that has plunged the group into an unprecedented crisis. Facing an annual general meeting for the first time since the scandal erupted in September, Matthias Mueller said: "On behalf of the Volkswagen Group and everyone who works here, I apologise to you shareholders for your trust in Volkswagen being betrayed. "This misconduct goes against everything that Volkswagen stands for," he added nine months after the start of the "Dieselgate" affair, when it emerged VW had installed emissions-cheating software into 11 million diesel engines worldwide. Volkswagen is still far from drawing a line under the scandal, with the costs of the affair still incalculable, while it remains unclear if VW's own internal investigation will pinpoint the major culprits behind the scam. The auto giant, which owns 12 brands ranging from Volkswagen and Porsche to Audi and SEAT, still faces a myriad of regulatory fines and lawsuits from customers and shareholders. Shareholders are expected to use the annual general meeting in the northern city of Hanover to let off steam at the way management has handled the affair. Two days ahead of the meeting, prosecutors provided more fodder to the irate shareholders when they said they were investigating former VW boss Martin Winterkorn for having allegedly manipulated the market by holding back information about emissions cheating at the car giant. A second former member of the board was also under probe, prosecutors said, without giving the individual's name, but a Volkswagen spokesman told AFP that the suspect was Herbert Diess -- who is in charge of the VW brand. Listed companies are required to disclose information that could affect market prices immediately. But VW complied with its disclosure obligation only on September 22, 2015, prosecutors said, four days after US regulators went public that they were charging the company for emissions cheating. Crisis has opened doors The allegations struck at the heart of shareholders' misgivings, as they have since early on in the scandal also accused management of dragging their feet in informing them about the scam, which led to a stunning 40-percent drop in the company's share price last autumn. The stock has since recovered somewhat, but is still 26 per cent below the levels before the scandal broke last September, and the company's finances also remain weak. After it was forced to set aside 16 billion Euros ($18 billion) in provisions to cover the costs of the affair so far, it sank to a net loss of 1.6 billion Euros, its first loss in two decades. Giving an update of the company's internal investigation into the affair, chairman Hans Dieter Poetsch said some 550 interviews had been carried out by the US consultants charged with the probe, Jones Day. Nevertheless, a number of shareholder lobby groups are demanding special enquiries into who should be held responsible for the affair, arguing that Jones Day is not sufficiently independent. Seeking to reassure shareholders of management's commitment to regain their trust, Mueller said the crisis could eventually prove to be "beneficial". "The crisis has also opened doors. It forced us to strengthen and speed up overdue changes, and to set new priorities. To turn this crisis into an opportunity has been my goal from the beginning," he said. Mueller hinted in a newspaper interview on Tuesday that the car giant could abandon diesel engine technology in the wake of the scandal. "We have to ask ourselves whether... we want to spend more money on the further development of diesel," Mueller told the business daily Handelsblatt, promising that VW would take a "fundamental" look at the issue. The move appeared to be in line with the group's plans to reposition itself as a leading player in environmentally sustainable modes of transport, with more than 30 all-electric models to be unveiled by 2025. Regardless of any doubts, small shareholders may have over VW's path forward, the power they wield remains limited. They hold just 11 per cent of the voting rights in VW, while the founding families Porsche and Piech hold 52 per cent, the regional state of Lower Saxony 20 per cent and the state of Qatar 17 per cent. Speaking for Qatar, Hessa Al Jaber said she believes that VW's management "genuinely wants to turn the company around." (AFP)

VW chief apologises to shareholders for emissions scandal

Embattled German auto giant Volkswagen will face the wrath of its shareholders at its annual meeting on Wednesday as it struggles to steer itself out of an unprecedented engine-rigging scandal. 
 
Nine months after the &quot;Dieselgate&quot; affair, when it emerged VW had installed emissions-cheating software into 11 million diesel engines worldwide, the former paragon of German industry is still nowhere near drawing a line under its deepest ever crisis. 
 
The costs of the affair are still incalculable, and it is not yet known whether VW&#39;s own internal investigation will pinpoint the major culprits behind the scam. 
 
But small shareholders are likely to use the upcoming AGM in the northern city of Hanover to let off steam at the way management has handled the affair, even if the power those shareholders wield remains limited. 
 
They hold just 11 per cent of the voting rights in VW, while the founding families Porsche and Piech hold 52 per cent, the regional state of Lower Saxony 20 per cent and the Emirate of Qatar 17 per cent. 
 
Ulrich Hocker, head of the DSW association of small shareholders, told AFP he has been attending the company&#39;s AGMs for the past 20 years and he expects this one to be &quot;very different, very contentious&quot;. 
 
&quot;There will be very little discussion about the group&#39;s operating performance. It will focus almost solely on the diesel engine scandal and claims for compensation,&quot; he predicted. 
 
VW, which owns 12 brands ranging from Volkswagen and Porsche to Audi and SEAT, is facing regulatory fines, as well as a myriad of lawsuits from shareholders and car owners. 
 
Shareholders accuse management in particular of dragging their feet in informing them about the scam, which led to a reeling 40-per cent drop in the company&#39;s share price last autumn. 
 
The stock has since recovered somewhat, but is still 26 per cent below the levels before the scandal broke last September. 
 
List of grievances&nbsp; 
 
Shareholder meetings in Germany tend to be long and drawn out as mom-and-pop investors stand up to have their say, but this one could stretch late into the evening. 
 
A number of shareholder lobby groups, such as DSW and SdK, are demanding special enquiries into who should be held responsible for the affair, arguing that an investigation being carried out by US consultants Jones Day is not sufficiently independent. 
 
Shareholders can also voice their discontent by withholding their formal &quot;approval&quot; of management actions over the course of the past year, normally only a formality at German AGMs. 
 
But any such vote in the case will remain symbolic as VW&#39;s biggest shareholders are likely to give their support to the management. 
 
The issue of the management board&#39;s pay is also likely to rile many, since the shareholders are seeing their annual dividend slashed to just 0.17 euro per share from 4.86 euros a year earlier, while board members are likely to still pocket generous bonuses. 
 
The dividend proposal &quot;will come under heavy fire,&quot; said Metzler bank analyst Juergen Pieper, while DSW&#39;s Ulrich Hocker slammed it as &quot;ridiculous&quot;. 
 
VW was compelled to set aside 16 billion euros in provisions to cover the costs of the affair so far, pushing it into a net loss of 1.6 billion euros, the carmaker&#39;s first loss in 20 years. 
(AFP) 
 
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In what is known as the 'Dieselgate' affair, VW had installed emissions-cheating software into 11 million diesel engines worldwide

Embattled German auto giant Volkswagen will face the wrath of its shareholders at its annual meeting on Wednesday as it struggles to steer itself out of an unprecedented engine-rigging scandal. Nine months after the "Dieselgate" affair, when it emerged VW had installed emissions-cheating software into 11 million diesel engines worldwide, the former paragon of German industry is still nowhere near drawing a line under its deepest ever crisis. The costs of the affair are still incalculable, and it is not yet known whether VW's own internal investigation will pinpoint the major culprits behind the scam. But small shareholders are likely to use the upcoming AGM in the northern city of Hanover to let off steam at the way management has handled the affair, even if the power those shareholders wield remains limited. They hold just 11 per cent of the voting rights in VW, while the founding families Porsche and Piech hold 52 per cent, the regional state of Lower Saxony 20 per cent and the Emirate of Qatar 17 per cent. Ulrich Hocker, head of the DSW association of small shareholders, told AFP he has been attending the company's AGMs for the past 20 years and he expects this one to be "very different, very contentious". "There will be very little discussion about the group's operating performance. It will focus almost solely on the diesel engine scandal and claims for compensation," he predicted. VW, which owns 12 brands ranging from Volkswagen and Porsche to Audi and SEAT, is facing regulatory fines, as well as a myriad of lawsuits from shareholders and car owners. Shareholders accuse management in particular of dragging their feet in informing them about the scam, which led to a reeling 40-per cent drop in the company's share price last autumn. The stock has since recovered somewhat, but is still 26 per cent below the levels before the scandal broke last September. List of grievances Shareholder meetings in Germany tend to be long and drawn out as mom-and-pop investors stand up to have their say, but this one could stretch late into the evening. A number of shareholder lobby groups, such as DSW and SdK, are demanding special enquiries into who should be held responsible for the affair, arguing that an investigation being carried out by US consultants Jones Day is not sufficiently independent. Shareholders can also voice their discontent by withholding their formal "approval" of management actions over the course of the past year, normally only a formality at German AGMs. But any such vote in the case will remain symbolic as VW's biggest shareholders are likely to give their support to the management. The issue of the management board's pay is also likely to rile many, since the shareholders are seeing their annual dividend slashed to just 0.17 euro per share from 4.86 euros a year earlier, while board members are likely to still pocket generous bonuses. The dividend proposal "will come under heavy fire," said Metzler bank analyst Juergen Pieper, while DSW's Ulrich Hocker slammed it as "ridiculous". VW was compelled to set aside 16 billion euros in provisions to cover the costs of the affair so far, pushing it into a net loss of 1.6 billion euros, the carmaker's first loss in 20 years. (AFP)

Volkswagen to face shareholder wrath in engine-rigging scandal

Volkswagen&#39;s former boss Martin Winterkorn is under investigation for having allegedly manipulated the market by holding back information about emissions cheating at the automobile giant, German prosecutors said today. 
 
&quot;The initial suspicion of market manipulation is directed against two former board members of the VW Group. Among them is the former chief executive of the Volkswagen group, Professor Dr Martin Winterkorn,&quot; said prosecutors in a statement. 
 
Investigators in Brunswick, in Lower Saxony state where VW is based, did not name the second suspect but said the individual was not the group&#39;s current chairman. 
 
Listed companies are required to disclose information that could affect market prices immediately. 
 
But VW complied with its disclosure obligation only on September 22, 2015, prosecutors said, four days after US regulators went public that they were charging the company for fitting devices designed to skew emissions data in their vehicles. 
 
&quot;There are sufficient indications suggesting that the obligation to make a disclosure statement could have been met at an earlier date,&quot; prosecutors said. 
 
Shares in VW plunged 17.14 percent on Monday September 21, 2015 the first trading day after the US charge was made public. 
 
They sank another 19.82 percent on Tuesday, wiping out 25 billion euros in market capitalisation in two days.

Investigators in Brunswick, in Lower Saxony state where Volkswagen is based, did not name the second suspect

Volkswagen's former boss Martin Winterkorn is under investigation for having allegedly manipulated the market by holding back information about emissions cheating at the automobile giant, German prosecutors said today. "The initial suspicion of market manipulation is directed against two former board members of the VW Group. Among them is the former chief executive of the Volkswagen group, Professor Dr Martin Winterkorn," said prosecutors in a statement. Investigators in Brunswick, in Lower Saxony state where VW is based, did not name the second suspect but said the individual was not the group's current chairman. Listed companies are required to disclose information that could affect market prices immediately. But VW complied with its disclosure obligation only on September 22, 2015, prosecutors said, four days after US regulators went public that they were charging the company for fitting devices designed to skew emissions data in their vehicles. "There are sufficient indications suggesting that the obligation to make a disclosure statement could have been met at an earlier date," prosecutors said. Shares in VW plunged 17.14 percent on Monday September 21, 2015 the first trading day after the US charge was made public. They sank another 19.82 percent on Tuesday, wiping out 25 billion euros in market capitalisation in two days.

VW ex-boss probed for market manipulation: prosecutors

A US judge extended the deadline for Volkswagen, US government regulators and owners of 2.0 litre cars&nbsp;to reach a final diesel emissions settlement until June 28. 
 
The tentative settlement announced in April includes an offer by Volkswagen to buy back nearly 500,000 polluting vehicles, as well as an environmental remediation fund to address excess emissions and a fund to promote green automotive technology. 
 
In April, US district judge Charles Breyer&nbsp;set a June-21 deadline to publicly file the final settlement, but in the Wednesday order he agreed to extend the deadline by one week to complete the complex agreement. 
 
Breyer said in a written order he was extending the deadline at the request of former FBI director Robert S&nbsp;Mueller, who has been acting as the court-appointed mediator, and &quot;given the highly technical nature of the proposed settlements in these complex proceedings.&quot; 
 
The US Environmental Protection Agency, California Air Resources Board, US Justice Department, Federal Trade Commission and lawyers representing owners have been working for weeks to hammer out the final agreements. 
 
Two sources briefed on the talks say the agreement is still on track to be finalised. 
 
Volkswagen spokeswoman Jeannine Ginivan noted that the delay was at the request of the FBI&#39;s Mueller. 
 
&quot;We thank our customers for their continued patience as the process of finalising agreements moves forward,&quot; Ginivan&nbsp;said. 
 
The settlement also will include an option to eventually get cars repaired if regulators approve a fix. Owners will get &quot;substantial monetary compensation&quot;, Breyer said in April. 
 
In April, Volkswagen said it would set aside 16.2 billion Euros ($18.2 billion) and slash its dividend to cover the costs from Dieselgate -- including nearly 8 billion Euros to cover buying back and fixing polluting vehicles. 
 
The initial settlement to be announced later this month is not expected to address about 80,000 larger Volkswagen, Audi and Porsche 3.0 litre vehicles with separate undisclosed software that allowed vehicles to emit up to nine times legally allowable pollution. Those vehicles are expected to be addressed at a later date. 
 
Another issue that would not be resolved until later is how much Volkswagen will pay in fines for admitting to violating the Clean Air Act, sources said. The EPA said in September 2015 that VW could face up to $18 billion in fines for installing the cheating software. 
 
After it is finalised, the agreement faces a public comment period and must get final judicial approval, which could come at a July 26 hearing. Judge Breyer did not delay that hearing. 
 
VW also faces an ongoing criminal investigation by the U.S. Justice Department. 
(Reuters)

Volkswagen has offered to buy back about 500,000 polluting cars

A US judge extended the deadline for Volkswagen, US government regulators and owners of 2.0 litre cars to reach a final diesel emissions settlement until June 28. The tentative settlement announced in April includes an offer by Volkswagen to buy back nearly 500,000 polluting vehicles, as well as an environmental remediation fund to address excess emissions and a fund to promote green automotive technology. In April, US district judge Charles Breyer set a June-21 deadline to publicly file the final settlement, but in the Wednesday order he agreed to extend the deadline by one week to complete the complex agreement. Breyer said in a written order he was extending the deadline at the request of former FBI director Robert S Mueller, who has been acting as the court-appointed mediator, and "given the highly technical nature of the proposed settlements in these complex proceedings." The US Environmental Protection Agency, California Air Resources Board, US Justice Department, Federal Trade Commission and lawyers representing owners have been working for weeks to hammer out the final agreements. Two sources briefed on the talks say the agreement is still on track to be finalised. Volkswagen spokeswoman Jeannine Ginivan noted that the delay was at the request of the FBI's Mueller. "We thank our customers for their continued patience as the process of finalising agreements moves forward," Ginivan said. The settlement also will include an option to eventually get cars repaired if regulators approve a fix. Owners will get "substantial monetary compensation", Breyer said in April. In April, Volkswagen said it would set aside 16.2 billion Euros ($18.2 billion) and slash its dividend to cover the costs from Dieselgate -- including nearly 8 billion Euros to cover buying back and fixing polluting vehicles. The initial settlement to be announced later this month is not expected to address about 80,000 larger Volkswagen, Audi and Porsche 3.0 litre vehicles with separate undisclosed software that allowed vehicles to emit up to nine times legally allowable pollution. Those vehicles are expected to be addressed at a later date. Another issue that would not be resolved until later is how much Volkswagen will pay in fines for admitting to violating the Clean Air Act, sources said. The EPA said in September 2015 that VW could face up to $18 billion in fines for installing the cheating software. After it is finalised, the agreement faces a public comment period and must get final judicial approval, which could come at a July 26 hearing. Judge Breyer did not delay that hearing. VW also faces an ongoing criminal investigation by the U.S. Justice Department. (Reuters)

US judge extends VW diesel emissions settlement deadline

German automaker Volkswagen saw net profit fall 19 per cent in the first three months of the year as it struggled to deal with a costly scandal over cars equipped to cheat on diesel emissions tests. 
The company also faced plummeting sales in Russia and Brazil due to those countries&#39; troubled economies. 
Profits for the January-March period fell to 2.37 billion euros from 2.93 billion euros a year earlier, the company said today. Revenue fell 3.4 per cent to 50.96 billion euros due in part to exchange rate effects. 
The net profit figure fell short of the 2.44 billion euros expected by analysts surveyed by financial information provider FactSet. 
Earnings and profit margins slipped at luxury brand Audi, one of the company&#39;s major money-makers. Operating profit eased to 1.3 billion euros from 1.4 billion euros a year earlier. The profit margin fell to 9.0 per cent from 9.7 per cent in the first quarter of 2015. Things went better at the company&#39;s Porsche brand. 
Operating profits, which exclude financial items such as interest and taxes, rose 14 per cent to 895 million euros. The sportscar and luxury SUV division turned in a fat profit margin of 16.6 per cent, up from 15.1 per cent. 
Sales fell 35 per cent in Russia, which has seen its currency plummet along with the price of oil, and 17 per cent in Brazil, which is in a deep recession. 
Volkswagen, based in Wolfsburg, Germany, faces heavy costs recalling and fixing cars that are equipped with engine-control software that could detect when a car was on a test stand and turned off the emissions controls during everyday driving. 
CEO Matthias Mueller said in a statement that the company &quot;managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions.&quot; The company set aside 16.2 billion euros from its earnings last year to deal with recalls and other costs. 
The company has reached a tentative agreement in federal court in San Francisco with US authorities, who first uncovered the cheating, to buy back or repair some 500,000 vehicles. 
Volkswagen, the US Department of Justice and attorneys for Volkswagen owners have until June 21 to file a final settlement with the court. 
The company reaffirmed its forecast for the full year, saying that it expects sales revenue to fall 5 per cent for all of this year compared to 2015 and an operating return on sales of 5.0 to 6.0 per cent.(AP)

German automaker Volkswagen saw net profit fall 19 per cent in the first three months of the year as it struggled to deal with a costly scandal over cars equipped to cheat on diesel emissions tests.

German automaker Volkswagen saw net profit fall 19 per cent in the first three months of the year as it struggled to deal with a costly scandal over cars equipped to cheat on diesel emissions tests. The company also faced plummeting sales in Russia and Brazil due to those countries' troubled economies. Profits for the January-March period fell to 2.37 billion euros from 2.93 billion euros a year earlier, the company said today. Revenue fell 3.4 per cent to 50.96 billion euros due in part to exchange rate effects. The net profit figure fell short of the 2.44 billion euros expected by analysts surveyed by financial information provider FactSet. Earnings and profit margins slipped at luxury brand Audi, one of the company's major money-makers. Operating profit eased to 1.3 billion euros from 1.4 billion euros a year earlier. The profit margin fell to 9.0 per cent from 9.7 per cent in the first quarter of 2015. Things went better at the company's Porsche brand. Operating profits, which exclude financial items such as interest and taxes, rose 14 per cent to 895 million euros. The sportscar and luxury SUV division turned in a fat profit margin of 16.6 per cent, up from 15.1 per cent. Sales fell 35 per cent in Russia, which has seen its currency plummet along with the price of oil, and 17 per cent in Brazil, which is in a deep recession. Volkswagen, based in Wolfsburg, Germany, faces heavy costs recalling and fixing cars that are equipped with engine-control software that could detect when a car was on a test stand and turned off the emissions controls during everyday driving. CEO Matthias Mueller said in a statement that the company "managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions." The company set aside 16.2 billion euros from its earnings last year to deal with recalls and other costs. The company has reached a tentative agreement in federal court in San Francisco with US authorities, who first uncovered the cheating, to buy back or repair some 500,000 vehicles. Volkswagen, the US Department of Justice and attorneys for Volkswagen owners have until June 21 to file a final settlement with the court. The company reaffirmed its forecast for the full year, saying that it expects sales revenue to fall 5 per cent for all of this year compared to 2015 and an operating return on sales of 5.0 to 6.0 per cent.(AP)

Scandal-hit Volkswagen sees profits fall in 1st quarter

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