– ‘Incalculable’ fines, lawsuits –
The shock revelations have wiped more than 40 percent off Volkswagen’s market capitalization, but the direct and indirect costs are still incalculable as the company risks fines in several countries and possible damages from customers’ lawsuits.
The powerful US Senate Finance Committee said Wednesday it is probing whether the company used the defeat devices to unfairly gain tax credits on diesel cars sold in the United States.
Altogether, buyers of VW cars and the company itself may have benefitted from more than $50 million (44 million euros) in these subsidies under the 2005 Alternative Motor Vehicle Tax Credit, in its 2009 and 2010 models, the committee said.
Volkswagen meanwhile issued a public apology in South Korea over the scam, and said it would consider a voluntary recall of 120,000 cars in the country.
VW Korea President Thomas Kuehl was due to answer politicians’ questions in parliament Thursday afternoon, according to state broadcaster KBS.
Volkswagen has said that the 6.5 billion euros ($7.3 billion) it set aside in the third quarter over the affair was only the estimated sum to cover repairs of affected vehicles.
To meet the billions of euros in financial outlays, Mueller said the group would embark on a huge cost-cutting program and review several projects.
Germany’s football world would not be spared, as Volkswagen owns the VfL Wolfsburg club and has investments in 17 professional clubs.
In the United States alone it faces up to $18 billion in fines from the Environmental Protection Agency, plus potential payouts from class action lawsuits and penalties from other regulators.
Asked about the looming fines, Mueller noted however: “Think about this: no one died from this, our cars were and are safe.”
