Ad hoc: Volkswagen AG published ad hoc announcement
Volkswagen AG confirms that it is in advanced discussions with the USDepartment of Justice and U.S. Customs and Border Protection. The aim ofthe discussions is to reach a settlement agreement regarding the settlementof certain criminal investigations and certain civil fines in connectionwith the Diesel issue in the USA.
Volkswagen AG further confirms market rumors that the company negotiated aconcrete draft of a settlement agreement with the aforementioned USauthorities which contains criminal and civil fines with a total amount ofUSD 4.3 Billion as well as measures to further strengthen the ComplianceandControl-Systems including the appointment of an Independent Monitor forthe next three years. Further, part of the settlement agreement is a GuiltyPlea regarding certain US criminal-law provisions and a Statement of Factson the basis of which the fines have to be made.
The final conclusion of the settlement agreement is still subject to theapproval by the Management Board and the Supervisory Board of Volkswagen AGand by the competent corporate bodies of further Group Companies involved.The competent corporate bodies will deal with this issue in the very shortterm, possibly even during today, the 10 January 2017 or tomorrow, the 11January 2017. A final conclusion of the settlement agreement is furthersubject to the execution by the competent US authorities and to theapproval of the competent US courts.
In case of a settlement agreement, the payment obligations are expected tolead to a financial expense that exceeds the current provisions. Theconcrete impact regarding the annual result 2016 cannot be defined atpresent due to its dependency on various further factors.