Volkswagen scandal may cost jobs

VW’s labour chief presented 20,000 workers with an uncertain future today...

Volkswagen scandal may cost jobs

Picture by: Mike Egerton / PA Archive/Press Association Images

The financial consequences of “Dieselgate” are likely to be most keenly felt by Volkswagen employees, one of their top officials said today.

Speaking to 20,000 workers at their Wolfsburg headquarters, labour chief Bernd Osterloh said that potential fines as a result of Volkswagen’s diesel emissions test-fixing could result in job losses in the US, Europe and elsewhere.

Volkswagen is facing a suit from the US Justice Department that could cost them up to $46 billion. The extent of the job losses would be dependent on the level of the fines.

Osterloh said: "Should the future viability of Volkswagen be endangered by an unprecedented financial penalty, this will have dramatic social consequences. We very much hope that the US authorities also have an eye for this social and employment-political dimension".

At the same Wolfsburg meeting, Chief Executive Matthias Mueller stated that there would be "substantial and "painful" financial damage as a result of the scandal.

Volkswagen earmarked €6.7 billion to deal with the the cost of recalling approximately 11 million cars globally. The company is Europe’s largest car manufacturer, employing 600,000 people worldwide.

German prosecutors have just expanded their "Dieselgate" investigation, with the number of suspects rising from six to 17.