Volkswagen settlement will not be replicated in Europe

By Sumit Modi

Following the announcement that Volkswagen has agreed to a huge settlement in the US following the emissions scandal, the company has clarified that it will not make similar compensations in Europe.

Volkswagen CEO Matthias Mueller has rejected demands of EU regulators, adding that such a settlement would be unaffordable.

According to Reuters, Mueller has claimed that VW is on solid financial footing, but a European deal would be difficult for the company to cope with.

Mueller said: "You don't have to be a mathematician to realize that compensation at arbitrarily high levels would overwhelm Volkswagen.

"In the US the (emission) limits are stricter, which makes the fix more complicated. And taking part in the buyback is voluntary (for customers), which is not the case in Germany, for example."

He has also said that the situations are not comparable, due to the added costs of needing to offer incentives alongside buying vehicles back in the US.

 

Follow @BizReviewUSA and @NellWalkerMG

Read the June issue of Business Review USA & Canada here

Share

Featured Articles

Top 10 cybersecurity specialists in the US

As cyber attacks grow in frequency and become increasingly sophisticated, Business Chief looks at the top 10 cybersecurity specialists in the US.

Silicon Valley Bank collapse: How did we get here?

US authorities have stepped in to protect all Silicon Valley Bank customers following the second-largest bank failure in the country's history

Top 10 best new leadership books by women to read in 2023

To mark IWD, here’s our pick of the best new leadership books – all penned by impressive women at the forefront of the ever-evolving world of work

Eight of the best business leadership podcasts

Leadership & Strategy

CEO John Pagano, leading Saudi Arabia's Red Sea Global

Leadership & Strategy

Top 10 female CEOs according to Fortune’s Global 500 list

Leadership & Strategy