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VW making progress in settlement talks?

Tuesday, August 16, 2016 - 01:25

Volkswagen and the U.S. Justice Department have reportedly held preliminary settlement talks about resolving a criminal probe into the automaker's diesel emissions scandal. As Ivor Bennett reports, fines for emissions violations are yet to be determined prolonging the agony for the German automaker.

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It may not have turned a corner, but it seems Volkswagen is at least moving in the right direction. The carmaker has reportedly held talks with the US Justice department to resolve the criminal probe into its diesel emissions scandal There hasn't been an official confirmation. but sources suggest a settlement would involve fines exceeding 1.2 billion dollars. SOUNDBITE (English) DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "It's obviously not going to be a very palatable number whatever the outcome. But you know, what they don't need is a legacy issue that drags on for several more years to come." Drawing a line under the scandal though won't be easy. The company's already agreed to pay over 10 billion dollars to buyback nearly half a million 2-litre diesel cars It could be forced to buyback another 85,000 3-litre cars, which would mean billions more in costs. And that's on top of the civil cases brought by 3 US states last month, seeking hundreds of millions of dollars at least. SOUNDBITE (English) DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "They could have a Macondo type scenario as BP did. They'll be trying to do everything they can to try to avoid that and in fairness they have been cooperating as much as they can with the US authorities in a bid to avoid that." Cooperating with authorities is one thing. But regaining the trust of consumers is another. And for that, there's no such thing as a quick-fix.

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VW making progress in settlement talks?

Tuesday, August 16, 2016 - 01:25