Dutch Volkswagen dealers halting sale of diesel cars over emissions scandal
Dutch Volkswagen dealers are halting the sale of diesel cars that may be affected by the German automaker's emissions-rigging scandal.
Pon, the Dutch importer of Volkswagens, Audis, SEATs and Skodas, says in a statement that the temporary sales halt applies to 4,100 cars that its dealers still have in stock.
Czech carmaker Skoda Auto, which belongs to Volkswagen AG, says 1.2 million of its vehicles had the engine that manipulated emissions data.
Skoda Auto spokesman Jozef Balaz told Czech public television on Monday that Volkswagen plans to recall all those cars and will cover the cost.
A European environmental organization says it has found some new models of Mercedes, Volkswagens, BMWs and other new cars consume much more gasoline than lab tests claim.
Gov. Haslam: VW Chattanooga could face job problems if cars don't sell
Tennessee government provided an estimated $358.2 million of the original $577.4 million in incentives that drew Volkswagen to located its Passat in Chattanooga with local governments providing the remaining $219.2 million.
And this year, Tennessee, Chattanooga and Hamilton County governments committed to more than $260 million in incentives for a new line of SUV production.
Emissions Scandal Puts Volkswagen CFO in the Hot Seat
The scandal has put Chief Financial Officer Hans Dieter Ptsch in the hot seat, as he confronts the daunting task of determining how much money VW will need to fix the millions of cars involved and to finance fines and settle legal claims against the company.
In the process, he will need to establish how much of the German auto maker’s billions of dollars of potential liabilities might be covered by insurance, move to plug any gaps in its auditing process and reassure vendors, bankers and investors of its health.
And, because the CFO is typically a company’s chief risk officer, Mr. Ptsch must quickly figure out how “deep the corporate rot is,” and begin mending the company’s reputation, said Christopher Bogart, chief executive of Burford Capital, a litigation-finance firm.
Since it isn’t clear how far the emissions problems extend, the CFO and his team must be prepared for a long-running, complex and expensive process.
VW’s insurance may cover some of the liabilities, but not everything, particularly follow-on litigation, Mr. Bogart said.
Volkswagen Ordered to Sell Its Stake in Suzuki
