A billion here, a billion there. Pretty soon you're talking real money.
When news broke that Volkswagen had installed emissions-cheating software on its diesel vehicles, who could have guessed that it would still be news two years later? And yet, here we are. Hundreds of thousands of cars have been recalled, multiple executives have been arrested, and billions of dollars have had to be spent making things right. But while we knew the cost of this scandal would be pricey, it seems to be getting more expensive every week.
Reuters reports that Volkswagen has had to set aside another $3 billion USD to fix its cheating diesels. That brings the total cost of the scandal to nearly $30 billion USD. Unfortunately for Volkswagen, the hardware fixes for older models have ended up more expensive than it originally thought. New estimates put the cost of the fix at about $6,100 USD per vehicle.
“We have to do more with the hardware,” a VW spokesman told Reuters. The same spokesperson did say, though, that fixes in Europe are right on track. That’s largely because in Europe most affected vehicles can be fixed with a simple software update. Those that can’t only need a simple parts change.
This news comes only a day after German authorities arrested Wolfgang Hatz, Volkswagen’s former head of powertrains. Former executive Oliver Schmidt also recently pleaded guilty to several charges and currently awaits sentencing.