Europe’s biggest carmaker, Volkswagen, rose more than 3 percent on Wednesday, January 11th, as investors welcomed the latest move to draw a line under the biggest business scandal in its 80-year history.
Volkswagen announced after the market close on Tuesday that it was in advanced talks over a civil and criminal settlement with the U.S. Justice Department over its diesel emissions test cheating, and planned to plead guilty to criminal misconduct.
In September 2015, Volkswagen admitted to installing secret software in hundreds of thousands of U.S. diesel cars to cheat exhaust emissions tests and make them appear cleaner than they were on the road, and that as many as 11 million vehicles could have similar software installed worldwide. But, despite the scandal, Volkswagen said on Tuesday it notched up record sales last year, led by premium brands Audi and Porsche, though analysts say it may have offered big discounts on VW brand cars which have suffered most from the crisis.
According to Forbes, “Investors liked news Volkswagen had agreed to a settlement in principle with U.S. authorities likely to cost $4.3 billion, while analysts saw the deal as ending much uncertainty about the final cost of diesel gate to the company.”