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VW could agree US large-car diesel fix by October

Wednesday, August 31, 2016 - 13:37
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Volkswagen AG's global Audi sales chief said on Wednesday that talks with US authorities over large-engined diesel cars found to have cheated emissions tests are progressing well and a technical and financial settlement could be agreed as soon as October.

[HONG KONG] Volkswagen AG's global Audi sales chief said on Wednesday that talks with US authorities over large-engined diesel cars found to have cheated emissions tests are progressing well and a technical and financial settlement could be agreed as soon as October.

"(We're) in really good discussions with US authorities", said Dietmar Voggenreiter, head of sales and marketing worldwide at VW premium brand Audi, speaking in an interview with Reuters in Hong Kong.

"Hopefully in October, latest in the beginning of November, we will have the final agreement with the US on 3.0 litre engine vehicles."

VW in June agreed with US authorities to pay up to US$15.3 billion for car buybacks and fixes to 475,000 2.0-litre VW and Audi diesel vehicles equipped with software that tricks emissions tests.

The accord did not include fixes for 80,000 VW, Audi and Porsche 3.0 litre engine that could potentially cost billions more if the automaker needs to buy them back.

The diesel emissions scandal, affecting roughly 11 million vehicles worldwide, continues to drag on VW and Audi profits, with Audi set to miss profitability targets this year and the core VW brand recording a 12 per cent year-on-year drop in profit in the second quarter.

REUTERS