Volkswagen went up 5% on Thursday with news that it would pay a nearly $10.3B settlement to U.S. regulators over its emissions cheating scandal.
According to Reuters, the average compensation to current car owners is around $5,000, but to some can reach upwards of $7,000. They also have the choice to either sell their vehicles back to Volkswagen or have the vehicles repaired for free by the firm. Most of the money would be allocated to paying owners of vehicles with 2-liter diesel engines, which were the ones programmed to cheat the emissions tests.
In September of last year, Volkswagen admitted that it had used specific software to bypass emissions requirements in nearly 11 million vehicles globally since 2009. Along with paying individual owners, Volkswagen also agreed to fund a grant program to offset air pollution. Here, we can see the very noticeable drop in stock price due to the scandal.
The settlement comes a day after Volkswagen CEO Matthias Müller promised shareholders that the firm would grow, in particular through added investment in electric vehicle development. Müller expects Volkswagen to sell around 10 million vehicles in 2016.
Although the settlement is currently listed as explained, it is subject to change until next Tuesday, during which it will be submitted to a U.S. judge for approval.
VLKAY currently sits at a Zacks Rank #2 (Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Volkswagen went up 5% on Thursday with news that it would pay a nearly $10.3B settlement to U.S. regulators over its emissions cheating scandal.
According to Reuters, the average compensation to current car owners is around $5,000, but to some can reach upwards of $7,000. They also have the choice to either sell their vehicles back to Volkswagen or have the vehicles repaired for free by the firm. Most of the money would be allocated to paying owners of vehicles with 2-liter diesel engines, which were the ones programmed to cheat the emissions tests.
In September of last year, Volkswagen admitted that it had used specific software to bypass emissions requirements in nearly 11 million vehicles globally since 2009. Along with paying individual owners, Volkswagen also agreed to fund a grant program to offset air pollution. Here, we can see the very noticeable drop in stock price due to the scandal.
The settlement comes a day after Volkswagen CEO Matthias Müller promised shareholders that the firm would grow, in particular through added investment in electric vehicle development. Müller expects Volkswagen to sell around 10 million vehicles in 2016.
Although the settlement is currently listed as explained, it is subject to change until next Tuesday, during which it will be submitted to a U.S. judge for approval.
VLKAY currently sits at a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>