Volkswagen CEO says emissions scandal bill could rise

Wed Oct 21, 2015 2:50pm EDT
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By Andreas Cremer

(Reuters) - Volkswagen (VOWG_p.DE: Quote) may have to set aside more than the 6.5 billion euros ($7.4 billion) it has so far allocated to cover the costs of an emissions scandal if car sales suffer, its chief executive said on Wednesday.

"The 6.5 billion (euros) applies to the recall," Matthias Mueller told reporters after a tour of VW's headquarters in the German town of Wolfsburg.

"I can only speculate about any further provisions. Should there be a change in sales volumes, we would react rapidly."

Lower Saxony Premier Stefan Weil, a VW supervisory board member, said sales had been stable in October so far.

Volkswagen also confirmed it had stopped the sale within the European Union of new cars containing the software that can cheat diesel emissions tests.

VW admitted on Sept. 18 it used illegal software to manipulate emissions tests on diesel vehicles in the United States, sparking the biggest business crisis in its history.

The admission has wiped about a quarter off its stock market value, forced out its long-time chief executive and sparked investigations and lawsuits across the world.

Volkswagen has suspended Frank Tuch, head of group quality control, two people familiar with the matter told Reuters.   Continued...

Volkswagen CEO Matthias Mueller (C) and Stephan Weil (L) Prime Minister of Lower Saxony and member of the VW Supervisory board look at the Golf 7 production line during a tour of the VW factory in Wolfsburg, Germany October 21, 2015. REUTERS/Julien Stratenschulte/Pool