• News
  • Business

Volkswagen to take €2.5bn hit from emissions scandal

Volkswagen to take €2.5bn hit from emissions scandal

German prosecutors have arrested a second employee of Audi, the carmaker owned by Volkswagen, in a deepening investigation into an emissions- cheating scandal.

German police arrested the former chief of engine development on Wednesday in connection with the vehicle maker's attempt to rig diesel-powered automobiles to deceive emissions testing.

Munich prosecutors have named the person taken into custody as Wolfgang Hatz, former board member at VW unit Porsche. So the brands lose a champion on that front, while other high-ranking VW Group executives with suspected ties to the diesel scandal likely won't be sleeping well for the foreseeable future.

Last year Porsche said no evidence had been found against him.

According to Bloomberg, Hatz was close to former VW chief executive Martin Winterkorn, who has denied any knowledge of the "defeat devices" which allowed vehicles to artificially reduce emissions during tests before their existence was exposed publicly.

A lawyer representing Hatz declined to confirm the arrest and also declined any further comment.

Its shares dropped after the statement and were down 3.1 per cent at the bottom of the German blue-chip DAX index which was up 0.2 per cent.

Donates $1 mln to hurricane-hit Puerto Rico
The island territory of more than 3 million USA citizens is reeling in the devastating wake of Hurricane Maria . Additionally, several telethons have been held to benefit Puerto Rico including on Univision and Telemundo.

Announced Friday by the German automaker, the added cost could push Volkswagen's total damages from the scandal past $30 billion.

Up until the most recent charge, VW has set aside €22.6billion euros to cover the costs of fines against them and for vehicle retrofits.

Last year, VW agreed with U.S. authorities to spend up to $15.3 billion to buy back or fix up to 475,000 2.0-litre polluting diesel cars.

Reuters provides more: "In March Munich prosecutors searched offices at the carmaker's Ingolstadt base, where about 44,000 workers are employed, and the premises of Jones Day, a United States law firm hired by VW to lead an investigation into the emissions scandal".

Volkswagen said the extra provisions would be reflected in its third-quarter operating results, which are due to be published on October 27.

USA vehicles rigged with the emissions-cheating technology represent only part of millions of other Volkswagen diesel cars linked to the scandal worldwide.

He was in charge of Audi's engine development from 2001 to 2007 before taking over the role for the entire Volkswagen Group.

Leave Your Comment

Leave Your Comment

Latest News

Breaking News


Trump waives Jones Act shipping restrictions for hurricane-battered Puerto Rico

In Washington Thursday, House Democrats called for immediate legislation to assist Puerto Rico and the U.S. By waiving the Jones Act, the USA will allow for more rapid delivery of aid to Puerto Rico.

Meghan Markle, Prince Harry attend #InvictusGames

Both were dressed in jeans, with the prince pairing it with a black polo shirt while his girlfriend wore a pale button-down shirt. After the game, Meghan accomplished another royal duty: shaking hands and chatting with the Australians and New Zealanders.

No. 4 Penn State to face road test at Iowa

But on fourth down, McSorley stood strong in the pocket and drilled the ball through a crowded end zone and into Johnson's chest. Against another blitz, Wadley broke loose around the left side for a 35-yard TD to give Iowa the lead with 1:42 left.

Uber Boss Responds To Ban And Petition — Exclusive Interview

Mr McDonnell showed no sympathy for the USA firm and revealed that he had never travelled in an Uber cab. He further tweeted an appeal to people of London to "work with us" in solving the issue.

New Zealand's ruling party ahead in election, set for coalition talks

Labour's Greg O'Connor has won the electorate of Ohariu, the seat previously held by United Future's Peter Dunne for 33 years. A record 1.2 million votes were cast in advance, but neither major party was expected to win an outright majority.

Trump will take 'appropriate' action in event of NK H-bomb test: Tillerson

North Korea's weakest nuclear test, its first one, conducted in 2006, generated a magnitude 4.3 tremor. According to its website, the first quake - with a 2.6 magnitude occurred at 12:43 a.m.

Asian Shares Mostly Lower As Fed Turns Hawkish

Interest rates have stayed low despite a shallow unemployment rate of 4.4 percent in August and inflation down to 1.4 percent. Thus, a few disappointing bits of economic data should not be expected to divert the Fed from its rate hike plans.

Ryanair cancels more than 2000 flights over the next six weeks

The bonuses would be conditional on completing more than 800 flight hours for Ryanair in the 12 months up to 31 October 2018. Compensation for passengers forced to re-book could reach 25 million euros ($30 million).

Senate Republicans derail bipartisan health care compromise

But he says he won't back it because it would take money away from New Jersey and other states that expanded Medicaid. Popp's statement said: "It is the leader's intention to consider Graham-Cassidy on the floor next week".

More than 200 dead as 7.1 magnitude quake hits Mexico

Rescuers are continuing to search for survivors with footage from the capital Mexico City showing volunteers joining the effort. Measured at a strength of 8.2, this quake is more powerful but less deadly than the one 32 years ago that killed thousands.