Report: VW May Suspend Dividend Payouts Amid Diesel Fallout

We’ve already heard Volkswagen is prepared to cut its workforce to offset costs related to dieselgate. Now, it looks like VW may have to halt its 2015 dividend payouts as the scandal continues.

The original report comes from German news agency DPA, which cited a VW board member as a source. “There is no sign that shareholders might even be able to hope for a single cent,” the agency reported.

Analysts estimate the diesel scandal could cost VW up to $34 billion globally. That money will go to upcoming vehicle recalls and legal costs around the world. VW has admitted that 11 million of its vehicles worldwide may have software intended to evade emissions controls.

In the U.S. alone, VW faces hundreds of civil lawsuits related to the diesel fallout, as well as recent charges from the Federal Trade Commission over its “clean diesel” ads. That’s not to mention the huge fines VW could face from the Environmental Protection Agency for violating the Clean Air Act.

Despite the report, VW isn’t (yet) claiming it will suspend its dividends. The automaker says it will outline its dividend plan at an annual press conference on April 28, and that no decision has been made yet.

Source: Automotive News (Subscription required)

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