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The German carmaker is in a mess: VW must pay a record fine

 Breaking News
The German carmaker is in a mess: VW must pay a record fine
April 21
10:00 2017

Once again, a story from two years ago in which the German concern Volkswagen was not in the best light has appeared in the news feeds. The fact is that the public became aware that special software was being installed in the cars of the German carmaker. The purpose of downloading secret utilities is to understate data on the emission of harmful substances from diesel cars of the concern. It was found that data on the environmental pollution had been distorted in 11 million cars. Experts estimated that, in total, fines and compensation amounted to the monstrous sum of $ 22 billion. That sum was to be distributed among federal regulators, consumers and car dealers in the States as well as regional authorities.

The other day CBS reported that the American judicial machine had given an okay for a deal between the United States authorities and the management of the auto giant. The company agreed to fully admit the blame that became the reason for the reduction of the claims amount. Thus, the concern undertakes to transfer 2.8 billion US dollars in the criminal case and 1.5 billion US dollars in the civil one.

Volkswagen Company has to go through a three-year trial period, during which the activities of the concern will be studied especially carefully.

Such an unpleasant story negatively affected both the financial performance and the company’s reputation.

The material was prepared with the participation of  Vladimir Haritonov,
a leading analyst of the brokerage company CT Trade

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