Volkswagen Could Have to Pay $90 billion for Its Emissions Cheat

[Haasman]

Volkswagen, the iconic German carmaker that installed emissions-cheats on some 11 million vehicles, has been in U.S. crosshairs for months. On Monday, the Justice Department finally pulled the trigger.

The move came in a federal court in Detroit, where prosecutors acting on behalf of the Environmental Protection Agency accused Volkswagen of a systematic effort to evade the environmental regulations enshrined in the 1963 Clean Air Act (the law has been subsequently amended). In a statement, the government alleged “that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA’s standards, resulting in harmful air pollution.”

If the auto maker is found guilty, the Justice Department wants Volkswagen to pay as much as $37,500 for every vehicle that violated the law. That means Volkswagen could have to pay out more than $90 billion, far greater than initial estimates of $18 billion in penalties.

Monday’s suit repeats the allegations made by the EPA when it announced the emissions cheat in September 2015. It also only impacts a small fraction of the cars that allegedly had the software, millions of which were sold in Europe, where diesel models are more popular. Germany is also investigating the company for the fraud.

The size of the possible financial penalties shows that U.S. law enforcement is playing hardball with the German company, which has already admitted wrongdoing. It could be an incentive to get Volkswagen to settle the case quickly, something that Kenneth Feinberg, the lawyer hired by the company to handle the U.S. inquiry, said he wanted to do last month. In a statement released after the suit was made public, VW reiterated its desire to cobble together a deal without going to trial.

“Volkswagen will continue to work cooperatively with the EPA on developing remedies to bring the TDI vehicles into full compliance with regulations as soon as possible,” the company’s statement said, using an acronym for diesel cars. “We will continue to cooperate with all government agencies investigating these matters.”

Volkswagen has already paid a steep financial cost for the cheat. Before the scandal broke in mid-September, its stock traded at more than $160. It now goes for $126.40.


http://news.yahoo.com/volkswagen-could-pay-90-bill

[62S-R-S]

'Volkswagen Could Have to Pay $90 billion for Its Emissions Cheat'


There may be an easier method of acquiring billions of dollars - but it's difficult to imagine a better or smarter one.

For places, persons set to receive the influx - the horizon looks sparkling beautiful, since the wealth is generated without having to create any industry, produce an item of any kind. No risk of investment, entrepreneurship, confronted at all.

In life it's said that the 'simple' techniques are most effective.. Example ; shifting massive amounts of capital by either punishment, or by force, one of them. Not by any hard work or creating something....taking it from someone else who 'has' it.

Asking -- if VW presenting their defense as a wooped dog, praying for mercy, is rather...pitiable.

[beh911]

I imagine they will agree to a settlement right before the scandal implicates the very top.

It makes you wonder why Piech and Winterkorn had such a disagreement over the past summer, doesn't it....

[dummkopf]

I thought about buying a VW after I heard of this scandal. What a smart car!!! Absolutely smarter than the average American voter because it knows when it is being probed.

[Haasman]

My take on it, it will be of course, a settlement. After all they don't want such a punitive ruling that people become unemployed at Volkswagen and its subsidiaries .... of course that doesn't address how much respiratory distress and health issues VW caused ...

[LiveFromNY]

.... of course that doesn't address how much respiratory distress and health issues VW caused ...

I'm gonna go with zero. Give or take zero.

[RSTarga]

I'm gonna go with zero. Give or take zero.

Me too!
This is ridiculous! Real deaths from Takata and GM, where are the prosecutions? Not to mention the negligence and fraud across the board from the financial sector before 2008, caused a hell of a lot more damage than this.
One coal fired plant probably produces more in a day.
To me this sounds more like trying to get them back to #3 or #4.
And I did buy a VW as this news broke.

[Frank Beck]

It would be interesting to see sales/P&L figures since the dealers started getting aggressive. What looked like a nuke going off initially has turned into good news for the dealers hopefully.


Can't say the same for Chipotle. Doubt that people are running out and buying burritos right now.

[37yrold911]

My take on it, it will be of course, a settlement. After all they don't want such a punitive ruling that people become unemployed at Volkswagen and its subsidiaries .... of course that doesn't address how much respiratory distress and health issues VW caused ...

not sure but I think EPA has a formula for that sort of thing - anyone who thinks indirect deaths do not happen needs to talk to a pulmonologist

IIRC, there is a NYT article discussing how NHTSA has been shortchanged (by Congress) on the fines they can levy for direct death & injury from air bags, etc.

[obscene]

There's an article that came out this week suggesting that it may be cheaper in the long run for VW to just buy back a portion of the cars instead of trying to put the fix in place.

http://www.cnbc.com/2016/01/07/volks...an-report.html