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You can find the current article at its original source at http://www.theguardian.com/business/2016/mar/08/volkswagen-may-cut-jobs-to-pay-for-emissions-scandal
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| Volkswagen may cut jobs to pay for emissions scandal | Volkswagen may cut jobs to pay for emissions scandal |
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| Volkswagen may have to cut jobs in the US and Europe, depending on how much it is fined for manipulating diesel emissions tests, a company official told workers at its German headquarters. | Volkswagen may have to cut jobs in the US and Europe, depending on how much it is fined for manipulating diesel emissions tests, a company official told workers at its German headquarters. |
| The US Department of Justice is suing VW for up to $46bn (£32.3bn) for breaching US environmental laws. There is still no fix for nearly 600,000 cars affected in the US almost six months after the scandal broke. | The US Department of Justice is suing VW for up to $46bn (£32.3bn) for breaching US environmental laws. There is still no fix for nearly 600,000 cars affected in the US almost six months after the scandal broke. |
| The extent to which VW may be forced to cut jobs to meet the costs of scandal depends “decisively” on the level of fines, according to VW’s works councils chairman, Bernd Osterloh. | The extent to which VW may be forced to cut jobs to meet the costs of scandal depends “decisively” on the level of fines, according to VW’s works councils chairman, Bernd Osterloh. |
| Osterloh, who sits on VW’s 20-member supervisory board, said: “Should the future viability of Volkswagen be endangered by an unprecedented financial penalty, this will have dramatic social consequences.” | Osterloh, who sits on VW’s 20-member supervisory board, said: “Should the future viability of Volkswagen be endangered by an unprecedented financial penalty, this will have dramatic social consequences.” |
| He called on the US authorities to consider the risk of possible job cuts in deciding on penalties. “We very much hope that the US authorities also have an eye for this social and employment-political dimension.” | He called on the US authorities to consider the risk of possible job cuts in deciding on penalties. “We very much hope that the US authorities also have an eye for this social and employment-political dimension.” |
| Europe’s largest car manufacturer employs more than 600,000 people at 120 factories, including 270,000 in Germany. Its plant in Chattanooga, Tennnessee employs about 2,200. | Europe’s largest car manufacturer employs more than 600,000 people at 120 factories, including 270,000 in Germany. Its plant in Chattanooga, Tennnessee employs about 2,200. |
| Speaking at the meeting, VW’s chief executive Matthias Müller said the scandal would inflict “substantial and painful” financial damage on the company. | |
| Last year the company set aside €6.7bn to cover the expected costs of recalling of about 11m diesel vehicles. It has postponed the release of its 2015 results until 28 April to assess the financial implications of the crisis. | Last year the company set aside €6.7bn to cover the expected costs of recalling of about 11m diesel vehicles. It has postponed the release of its 2015 results until 28 April to assess the financial implications of the crisis. |
| Müller said: “The software manipulations and its consequences will keep us busy for a long time,” adding that it would take years to determine the full financial impact of the scandal. | |
| Lower Saxony, a German state that is VW’s second-largest shareholder, expects more “unpleasant news” to emerge in the coming months but it remains confident that the company has the financial strength to cope, Müller said. | |
| Stephan Weil, Lower Saxony’s prime minister, who is also a member of the supervisory board, also spoke at the meeting. “We will this year probably every now and then be confronted with unpleasant news related to ‘Dieselgate’,” he said. | Stephan Weil, Lower Saxony’s prime minister, who is also a member of the supervisory board, also spoke at the meeting. “We will this year probably every now and then be confronted with unpleasant news related to ‘Dieselgate’,” he said. |
| “The damage will, on balance, not be minor, that much can already be said today, but Volkswagen luckily has a strong economic base.” | “The damage will, on balance, not be minor, that much can already be said today, but Volkswagen luckily has a strong economic base.” |
| German prosecutors have widened their investigation into the scandal and are targeting 11 more employees. | German prosecutors have widened their investigation into the scandal and are targeting 11 more employees. |
| Klaus Ziehe, an official in the state prosecutor’s office in Braunschweig, Lower Saxony, which is leading the German case against VW, said 17 people were being investigated, up from six previously. | Klaus Ziehe, an official in the state prosecutor’s office in Braunschweig, Lower Saxony, which is leading the German case against VW, said 17 people were being investigated, up from six previously. |
| “The number of suspects has risen, although none are from the management board,” Ziehe added. | “The number of suspects has risen, although none are from the management board,” Ziehe added. |