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Volkswagen (VLKAY) to Plead Guilty to Criminal Charges
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Volkswagen Aktiengesellschaft is set to plead guilty in the Justice Department's diesel emissions investigation to three felony counts.
Per the plea arrived at earlier, the company has agreed to adopt several reforms, new audits and an independent monitor’s oversight for three years. The company has also agreed to pay over $4.3 billion as civil and criminal fines.
In aggregate, Volkswagen has agreed to pay about $25 billion in the U.S. related to claims from car owners, environmental regulators, states as well as dealers. Roughly $10 billion is expected to be spent on buybacks and for compensating nearly 500,000 vehicles. While some car owners are seeking individual criminal compensation, the request is likely to be rejected.
Several executives of Volkswagen have been accused of being involved in the scandal. The company has already suspended 24 employees associated with the scandal and the chairman expects to undertake further disciplinary action.
Volkswagen, operating in the auto sector along with Honda Motor Co., Ltd. (HMC - Free Report) , Fiat Chrysler Automobiles N.V. and Renault SA (RNLSY - Free Report) , has also agreed to pay almost $3 billion to offset excess emissions. Moreover, $2 billion worth investments in zero emission vehicle infrastructures as well as in awareness programs for the next 10 years are to be undertaken by the company.
Despite the crisis, Volkswagen Group performed well in fiscal 2016. The company delivered record 10.3 million vehicles to customers worldwide in the fiscal year, up 3.7% year over year and achieved its target for 2016. Vehicle production and sales in the year also increased 3.9% and 3.8%, respectively. Moreover, the company is proposing to increase its fiscal year dividend to €2 per share, from the €0.11 paid in 2015.
For fiscal 2017, management expects deliveries to increase moderately from 2016, although market conditions are expected to be challenging. Intense competition, volatile exchange rates and consequences of the emission scandal are expected to be the major dampeners.
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Volkswagen (VLKAY) to Plead Guilty to Criminal Charges
Volkswagen Aktiengesellschaft is set to plead guilty in the Justice Department's diesel emissions investigation to three felony counts.
Per the plea arrived at earlier, the company has agreed to adopt several reforms, new audits and an independent monitor’s oversight for three years. The company has also agreed to pay over $4.3 billion as civil and criminal fines.
In aggregate, Volkswagen has agreed to pay about $25 billion in the U.S. related to claims from car owners, environmental regulators, states as well as dealers. Roughly $10 billion is expected to be spent on buybacks and for compensating nearly 500,000 vehicles. While some car owners are seeking individual criminal compensation, the request is likely to be rejected.
Several executives of Volkswagen have been accused of being involved in the scandal. The company has already suspended 24 employees associated with the scandal and the chairman expects to undertake further disciplinary action.
Volkswagen, operating in the auto sector along with Honda Motor Co., Ltd. (HMC - Free Report) , Fiat Chrysler Automobiles N.V. and Renault SA (RNLSY - Free Report) , has also agreed to pay almost $3 billion to offset excess emissions. Moreover, $2 billion worth investments in zero emission vehicle infrastructures as well as in awareness programs for the next 10 years are to be undertaken by the company.
Despite the crisis, Volkswagen Group performed well in fiscal 2016. The company delivered record 10.3 million vehicles to customers worldwide in the fiscal year, up 3.7% year over year and achieved its target for 2016. Vehicle production and sales in the year also increased 3.9% and 3.8%, respectively. Moreover, the company is proposing to increase its fiscal year dividend to €2 per share, from the €0.11 paid in 2015.
For fiscal 2017, management expects deliveries to increase moderately from 2016, although market conditions are expected to be challenging. Intense competition, volatile exchange rates and consequences of the emission scandal are expected to be the major dampeners.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>