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Volkswagen to take $18.2 billion hit on emissions scandal
Neither VW nor the US Justice Department or environmental agency EPA were willing to comment on the report.
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The company later admitted that 11 million of its diesel vehicles around the world had the software. But manufacturers were found to use other techniques that allowed them to modify emission levels in testing.
The announcement came ahead of a news conference at its Wolfsburg headquarters that follows the outlines of a deal with USA environmental authorities.
Under the diesel emissions solution deal, Volkswagen will buy back 500,000 of the 2.0 liter diesel cars, along with paying $5,000 in compensation to each affected United States customer.
The company released its full year earnings on Friday, reporting a net loss of 5.5 billion euros ($6.2 billion) in 2015. Analysts told Reuters the total cost of the settlement, with the buybacks, could reach $10 billion. It said that its law firm Jones Day expects to conclude the investigation by the fourth quarter. Some 450 interviews have been consulted and 65 million documents submitted for electronic review.
Volkswagen is committed to earning back the trust of its customers, dealers, regulators and the American public.
“We may also contact Volkswagen Korea to initiate talks to resolve the conflict (based on the USA court decision)”, Ha added.
The San Francisco lawsuit had accused Volkswagen of major damages to the environment and to the owners of the tainted diesel cars.
Separately, Italian automaker FIAT is being investigated following a tip from parts supplier Bosch about possible emissions irregularities, he said. It’s also hired attorney Kenneth Feinberg to run a compensation fund for owners.
Five German carmakers have made a decision to recall 630,000 vehicles in Europe to fix diesel emissions management software, said German Transport Minister Alexander Dobrindt on Friday. The litigation is over software created to mislead emissions tests that should have revealed the cars violate pollution standards.
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All British diesel cars in road checks exceeded laboratory limits for nitrogen oxide emission but only Volkswagen had used so-called “defeat devices” to cheat the tests.