Exclusive Exclusive: VW Seeks Dieselgate Settlement in Canada

Volkswagen is working to achieve a settlement with Canadian diesel owners as with other owners affected by the Dieselgate scandal around the world, a VW spokesman confirmed to Handelsblatt. In the United States, Volkswagen agreed to pay $10 billion (€9 billion) in damages to diesel owners. If the same settlement is reached in Canada, the automaker would be on the hook for up to $2 billion. In Canada, there are 100,000 four-cylinder Volkswagen diesel vehicles on the roads that contain the software used to cheat emissions tests. That’s approximately a fifth as many cars in the United States with the same cheating software. Volkswagen already faces numerous class-action lawsuits in Canada over the diesel emissions scandal. Europe’s largest automaker has admitted to manipulating emissions values in 11 million diesel vehicles worldwide. Volkswagen recently dodged a bullet in Germany, where 2.8 million diesel vehicles are affected. Transportation Minister Alexander Dobrindt said the country’s largest employer wouldn’t face fines. “We now have the situation that Volkswagen is meeting with the requirements we have set, namely to bring the cars in compliance with the rules,” Mr. Dobrindt told broadcaster N-TV. “This is what is appropriate.” Volkswagen has set aside €16.2 billion to cover with the fallout for the emissions scandal.  Frank Schwope, an analyst at Nord LB bank in Hanover, said the €16 billion set aside is the minimum Volkswagen will pay once everything is settled. “Worldwide, we’re still expecting about €20 billion to €30 billion,” Mr. Schwope told Handelsblatt in a recent interview. Read the full story in Tuesday’s Handelsblatt Global Edition Picture Source: Reuters