Automotive - - Jan 04,2017
According to Chief Executive Matthias Mueller, Volkswagen is aiming to build a fresh path with its January sales.
At the Paris Motor Show in September, Chief Executive Matthias Mueller wished for a settlement with the United States DOJ in the form of a Christmas gift from Santa.
Last year, the German car maker covered varies stages in order to close the case related to the emission-cheating scandal. Moreover, the automobile company also pledged to offer additional funds for battling climate change and also initiated its electric cars division.
All these efforts were analyzed by critics as a move to improve its ‘naughty’ image in the eyes of the furious customers and environment conscious drivers.
The DOJ criminal fine is expected to be concluded before January 20, as after that President Barack Obama would be leaving the office. VW might be placed in the pole position if the settlement proceeds according to its plan.
Analyst Arndt Ellinghorst from Evercore ISI expects the DOJ fine to be somewhere around $3 billion, which would be managed by the VW's 18.2 billion euro diesel provisions that are already kept separately.
Ellinghorst further added that, anything close to $5 billion will be only tagged as a short-term negative. Such a hefty fine would break the current record under US federal environmental laws, which was previously set by BP's charge in the Deepwater Horizon oil spill.
At present, the recent sales data in EU indicates that the drivers are less offended by emissions-cheating in comparison to the bureaucrats in Brussels. The German carmaker, Volkswagen, managed to pull out a small annual gain in market share across Europe in November significantly the first time after the diesel scandal.
The company is planning to forget its mistakes and disappointments of the previous year to move forward on the road to success.