For the VOLKSWAGEN group, the emissiongate is a devastating and long-lasting “nightmare”. Volkswagen group said the diesel cheating scandal has so far led VW to pay 31.3 billion euros (about 245 billion yuan) in fines and settlements,media reported. VW expects the losses to last until 2021, and the group says it is ready to fund it.
On September 18, 2015, the U.S. Environmental Protection Agency accused some of VW’s diesel vehicles of using illegal software in the country’s emissions tests to evade standards, and of actually emitting 10-14 times more emissions than they did, creating a huge public health threat.
Volkswagen later admitted that about 11 million Volkswagenvehicles were affected worldwide, including some diesel cars from Porsche and Audi.
Over the past four-and-a-half years, VOLKSWAGEN has been subjected to numerous regulatory investigations and lawsuits, and cumulative losses continue to rise, taking years to resolve.
According to statistics, in 2019 alone, VW’s special spending will reach 2.3 billion euros (about 18 billion yuan). Frank Vettel, VW’s chief financial officer, said special spending was expected to reach 2.9 billion euros in 2020 and 1.2 billion euros in 2021. A VW spokesman said the group had prepared the required cash flow.
Volkswagen has stopped car production at several factories around the world as a result of the outbreak, and Herbert Diess, VW’s chief executive, said in a German television program that there was no sales or revenue in all but the Chinese market and that there were high fixed costs during that time. About 2 billion euros a week.
But Mr Dees added that VW had 21.3bn euros in liquidity at the end of last year and that VW did not need government bailout funds at the moment.