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VW Likely to Suspend Stock Dividend
Volkswagen AG’s board appears likely to suspend the company’s quarterly dividend to help pay for the escalating costs of remedying its diesel emission cheating scandal.
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Volkswagen AG’s board appears likely to suspend the company’s quarterly dividend to help pay for the escalating costs of remedying its diesel emission cheating scandal.
Germany’s DPA news service cites an unnamed board member as declaring, “There is no sign that shareholders might even be able to hope for a single cent.” Reuters says the company paid out €2.3 billion to shareholders last year.
VW has admitted rigging some 11 million diesels to meet government emission standards but then spew as much as 40 times the allowable nitrogen oxide pollutants in real-world driving conditions.
VW has set aside €6.7 billion ($7.6 billion) to pay for potential fines, lawsuit settlements and repair costs worldwide. But the company currently faces theoretical fines at least nine times that amount in the U.S. alone from federal government claims by the Environmental Protection Agency, Justice Dept. and Federal Trade Commission.
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