In regards to Volkswagen, there is little people have to talk about other than the ongoing emissions scandal. But, as it seems to be coming to an end, it is now Volkswagens turn to decide what they are going to do about their future. So, what is VW’s next step? And how are they going to compensate for the scandal that they caused?
Well, it looks as like there is a deal in principal which will cost VW billions. There seems to be two options in place for those who own any if the faulty vehicles in the US. Option one, is to get the car repaired and receive a compensation package. The second option is to have VW buy your car back and again, receive the compensation package offered. The cars will however, be bought back at the estimated value before the scandal started in September 2015. Although this plan is not yet completely certain, the real deal involves the small details surrounding the 500,000 2.0 litre VW owned vehicles will be announced in June 2016. The main detail though concerns the size of the compensation package in the US, If is too big, VW are worried that it will cause huge inflation for their European strategy later, so time must be taken for planning.
There are also other financial uncertainties ahead for VW. For instance, it has been agreed that Volkswagen will have to pay large fines to the US governments and environmental agencies, which are estimated in the billions. As well as that, they will have to pay into an environmental fund and, promote green and eco friendly car technology.
Volkswagen is going to have to pinch their pockets as when the scandal started, $6.7 billion was put aside to deal with the crisis. But, it has recently emerged however that the emissions saga will cost them in excess of $35 billion, so money will have to be found somewhere.
The sooner that a deal is done the better. Then finally, people, the motoring industry and the Volkswagen family can all be happy.