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VW’s Mueller: Diesel Scandal Impact Will Be “Substantial and Painful”
Volkswagen AG’s admission that it rigged 11 million diesel engines to cheat emission standards will take a “substantial and painful” financial toll and take years to resolve, warns CEO Matthias Mueller.
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Volkswagen AG’s admission that it rigged 11 million diesel engines to cheat emission standards will take a “substantial and painful” financial toll and take years to resolve, warns CEO Matthias Mueller.
Mueller tells employees in Wolfsburg, Germany, the company can expect “unpleasant news” throughout this year and beyond. The issue, he says, will keep the company busy “for a long time.”
VW set aside €6.7 billion ($7.4 billion) last autumn to pay for recalls to bring the cheater diesels into regulatory compliance. But the company faces many times more than amount in fines and legal settlements, the latter being likely to drag out for several years.
An analyst at Baader Bank predicts VW’s delayed 2015 earnings report due on April 28 will reveal the company is nearly tripling its diesel fund to €22.2 billion ($24.5 billion).
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