25
2016
04

Volkswagen will set aside $ 18 billion to quell scandal emissions

  FX168 news Volkswagen (Volkswagen) on Friday (April 22) announced that the company will be diesel emissions testing fraud scandal set aside 16.2 billion euros ($ 18.2 billion) of the provision, and dividend cuts. This provision will be included in 2015 results.


  More and more signs that, after Volkswagen exposed cheating scandal, regulatory action is affecting the wider automotive industry. Including Mercedes-Benz and Opel, and Volkswagen of Germany, including car manufacturers, agreed to recall a total of 630,000 cars in order to address the root causes of high emissions of diesel engine technology.


  Volkswagen on Thursday (April 21) announced a framework agreement with the United States, will repair or repurchase approximately 500,000 cheat emission diesel vehicles, and the establishment of environmental and consumer redress fund.


  Analysts said that Volkswagen is critical for reconciliation, so that it can be included in this scandal-related costs in 2015 earnings, and that Europe's largest automaker to begin to rebuild the trust of investors and customers to it. Volkswagen's 2015 earnings report since February has been the delay in publication.


  Volkswagen said the funds for the provision of emissions scandal will cause the Company's 2015 net loss of 1.36 billion euros, the highest ever, and is the first annual loss since 1993. Complete earnings on Thursday (April 28) released.


  However, analysts say that, the public may also take on more costs, for example, reached a civil settlement to the US Justice Department could face a fine penalty, in addition to a survey conducted by the US Department of Justice also enable the company faces criminal proceedings. In addition, the public will be compensated if the United States more than the number of users affected by diesel vehicles, and who is responsible for the ongoing investigation of several cases related to the scandal, these problems remain unresolved.


  Volkswagen Group CEO Matthias Mueller also said he could not give the total cost of the scandal brought about by digital emissions, but there is no reason to believe that 2015 will lead to a loss of layoffs. Some analysts estimate the overall cost of the scandal around $ 30 billion.


  The company said it plans to dividend 0.11 euros per ordinary share, 0.17 euros per preferred dividend. This is far below the 4.8 euros per preferred stock and $ 4.86 per common share dividend in 2014.


  Volkswagen also said that 2015 bonuses would mean a 39% reduction from a year ago. Management bonus has been a conflict between the public and the workers and some of the major investors in the tipping point. The second largest shareholder of the company requires Volkswagen to cancel or substantially reduce management bonuses.


  Volkswagen preferred shares fell 1.3 percent on Friday, reported 125.45 euros per share, the previous week, rose sharply. Since February admit cheating diesel emissions since its preferred shares have fallen nearly 20%.


« Previous Next »

Comment:

◎Welcome to the discussion, please post your views here, share your opinion.