VW reaches US deal over emissions scandal
Volkswagen has reached an agreement with US regulators to offer "substantial compensation" over the diesel emissions cheating scandal.
The exact numbers have not been released, but the agreement will involve VW offering owners the option of a buyback or a fix for their car. Around 600,000 vehicles were affected in the US, and 11 million globally.
The global costs for VW will be substantial, with estimates varying greatly between NZ$36 billion to NZ$67 billion.
Once the exact details of the US deal are known it will become clearer how much this is going to cost VW globally because the figures paid in the US are likely to influence settlements in other countries.
Overstating fuel efficiency is not confined to the German car manufacturer.
Japan's Mitsubishi Motors has seen its share price plummet 33 percent in two days after it apologised for rigging fuel efficiency tests for mini cars sold in Japan.
The company said the test manipulation involved 625,000 vehicles produced since mid-2013. These include its eK mini-wagon as well as 468,000 similar cars it made for Nissan Motors.
Other car companies have previously been caught out overstating their vehicles' fuel efficiency.
South Korean car makers Hyundai Motor and affiliate Kia Motors in 2014 agreed to pay US$350 million (NZ$506 million) in penalties to the US government for falsifying fuel economy ratings.