German Probe Into Alleged Vw Market Manipulation Could Wrap Up This Year

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BRAUNSCHWEIG, Germany – German prosecutors could wrap up an investigation into alleged market manipulation by senior Volkswagen executives this year, the prosecutors said on Thursday, after ordering the carmaker to pay 1 billion euros to settle claims of emissions cheating.

On Wednesday, Braunschweig prosecutors fined Volkswagen (VOWG_p.DE) for management lapses in failing to prevent cheating of diesel emissions tests, one of the biggest ever penalties imposed by German authorities against a company.

The 1 billion euros is not included in the 25.8 billion euros ($30 billion) that Europe’s biggest carmaker has so far set aside to cover costs related to its 2015 admission that it cheated U.S. diesel emissions tests, and so it will hit earnings, analysts at Evercore ISI said.




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