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VW Boss Says C02 Cheat Device Will Cause Financial Strife
Industry News
Remember the VW Golf GTi TCR? Well not surprisingly the press release was timed to occur at the same moment VW’s CEO, Matthias Mueller, was giving a rather somber summary to VW delegates and board members about the damage being caused by the emissions scandal. The upshot of the summary was that VW’s self inflicted oversight will cause “substantial and painful” financial damage on the company. Mueller also warned that more bad news could emerge over the course of the year and yet more pressure was being added from German state prosecutors who have now widened their investigations. “The damage will, on balance, not be minor, as much as that can already be said today but Volkswagen luckily has a strong economic substance,” said Matthias Mueller. German prosecutors are investigating up to 17 VW employees whom they believe were responsible for developing techniques to manipulate emissions tests in order to artificially lower C02 emissions results. Doing so allowed VW to convince potential buyers that the lower polluting cars were better for the environment and with additional tax benefits the running costs would also be lower. The impression given by VW is that it is ready to throw unimportant employees under the bus in order to spare the blushes of its senior leadership. However VW is preparing to dig deep and has set aside $7.3 billion dollars to prepare for a global recall of over 11 million cars affected by the emissions ‘cheat device’. The $7.3 billions only covers the cost of repairs and VW is expected to have to dig further still to cover compensation claims and law suits. In the end the whole episode is expected to cost VW around $20 billion dollars in total.  VW-CEO-Matthias-Mueller-Laughing
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