VW to purchase 480,000 vehicles

German auto manufacturer Volkswagen A.G agreed to compensate owners of about 480,000 vehicles through a blend of buy backs, cash compensation or repairs in light of the diesel emissions cheating crisis.

According to the judge overseeing proceedings, the company’s proposal would include making an undisclosed payment to a fund for environmental remediation efforts related to the vehicles, which are equipped with devices that allowed them to emit nitrogen oxides in excess of U.S. vehicle standards. Other funds would go toward promoting green automotive technology.

The company has already taken a EUR 6.7bn ($7.56bn) charge on its earnings over the crisis and on Friday its board of directors is expected to approve a “double-digit billion euro” charge against its 2015 earnings.

Volkswagen has until 21 June 2016 to disclose specifics of the proposed deal for scrutiny by the court. A hearing on the settlement, which will need the court’s approval, is scheduled for 26 July 2016.

Source: MarketWatch

4 thoughts on “VW to purchase 480,000 vehicles

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s