Talk Money: April 22, 2016
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 costs for VW will be substantial, with estimates ranging from NZ$36 billion to NZ$67 billion. That is a pretty wide estimate, so once the exact details of the US deal are known it will become clearer how much this is going to cost VW globally.
The figures paid in the US are likely to influence settlements in other countries.
Meanwhile Mitsubishi Motors has seen its share price fall 33 percent in two days. It has apologised for rigging fuel efficiency tests for cars sold in Japan.