Talk Money: October 9, 2015
The Volkswagen emissions scandal is getting worse and potentially a lot more expensive for VW.
VW has set aside US$7.3 billion (NZ$10.9 billion) to cover the costs of the scandal.
The company faces potential fines in the US of NZ$27 billion but hopes to settle for much less than that.
However analysts say the real costs could run to at least NZ$54 billion – the equivalent of three years' of VW's profits.
That includes fines, legal action in other countries, lawsuits from customers, potential lost sales and the cost of remedying the problem with the 11 million cars.
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