The share price of Volkswagen rose by nearly 7% to €120 last night on the news that the German company and US officials have reached a deal whereby Volkswagen would buy back up to 500,000 diesel cars in the States which have been affected by the diesel emissions scandal at a cost of €890m.
"They've agreed on a maximum amount of money, over one billion dollars .. how it's allocated and distributed, that remains to be seen," a source who has been briefed on the deal told the Press Association.
The German company is due to present fleshed-out proposals to a US District Court later today regarding how it will get the vehicles off the road.
Meanwhile, the share price of Mitsubishi Motors slumped by up to 15% last night, its biggest one-day fall in nearly 12 years after the company said it found evidence its employees had falsified fuel mileage test data for 157,000 of its models and nearly 470,000 produced for Nissan.
The revelation is the second major corporate scandal to rock Japan in the past year. Last summer the Chief executive and other senior managers at electronics giant, Toshiba resigned having admitted to inflating profits by over $1bn over a period of seven years.
