VW chief: US-style penalties in Germany would overwhelm the company

Volkswagen chief executive Matthias Mueller warned about drastic consequences for the car manufacturer if penalties on the company in the US over its emissions scandal are also enforced in Germany, the Sunday issue of German daily Die Welt said.

"You don't need to be a mathematician to recognize that a damages payment of any amount would overwhelm Volkswagen," Mueller told the paper, amid renewed calls from German consumer watchdogs for a US-style repayment to VW customers in Germany.

The company has agreed to pay as much as 14.7 billion dollars for buybacks, damages and penalties in the US resulting from the carmaker's emissions scandal.

The German carmaker said it would buy back or retrofit about 480,000 2-litre diesel vehicles in the US affected by the scandal, and offer consumers cash payments on top for their troubles.

Mueller said that Volkswagen has set aside 16.2 billion euros (18 billion dollars) to deal with the crisis, and remained financially secure.

However, the VW chief said the situation in Germany could not be compared with the US, where authorities expect most customers of VW diesel cars affected by the emissions scandal to upgrade their vehicles to meet emissions standards

Owners of these cars in the US are to receive cash payments to redress the harm caused by the company's deceptive advertising.

"Payments to customers in the US are meant to give owners an incentive to retrofit their cars," Mueller said. "But I don't need to comment on the financial impact for our company if we were to do that" in Germany, the VW chief said.

Last update: Sun, 03/07/2016 - 16:09

More from Business

Bombardier announces 7,500 job cuts as part of restructuring

Canadian aircraft and train manufacturer Bombardier will cut a further 7,500 jobs as part of its ongoing...

Tobacco giant BAT makes 47-billion-dollar takeover bid for US rival

British American Tobacco Plc said on Friday it has offered some 47 billion dollars to acquire 57.8 per cent of...

ECB to hold rates, decides against extending bond-buying scheme

The European Central Bank left its key interest rates at historic lows on Thursday and left its 80-billion-euro-a-...

Nissan finishes purchase of 34-per-cent stake in Mitsubishi Motors

Nissan Motor has completed its purchase of a 34-per-cent stake in scandal-plagued Mitsubishi Motors for 237 billion...

EU seeks to strengthen trade defence measures as China threat looms

The European Commission proposed a new compromise Wednesday to protect EU industry against unfairly cheap imports,...