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Volkswagen seeks $3.41 bn from suppliers to mitigate emissions scandal costs

Tuesday, Oct 13, 2015

Volkswagen wants to extract 3 billion euros ($3.41 billion) in price cuts from its suppliers to help mitigate the costs of an emissions scandal that has rocked the company, German newspaper Handelsblatt reported on Monday.

The business daily, citing company sources, said the measure would be part of a broader cost-cutting programme including pay, marketing, sponsoring activities and variety of models to help it bear an estimated 40 billion euros in costs of the scandal.

Europe's largest automaker is setting aside 6.5 billion euros in the third quarter to cover servicing and marketing outlays after admitting it had rigged diesel emissions tests.

The biggest business crisis in VW's 78-year history has wiped about a third off its share price, forced out its long-time CEO, prompted investigations across the world and shaken both the car industry and German establishment.

Volkswagen was not immediately available to comment.

 

auto.economictimes.indiatimes.com

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