By Ruth Mutegi
German carmaker Volkswagen has reportedly reached a 15 billion dollar settlement with US car owners after admitting it cheated emission tests.
The deal would offer to repair or buy back the affected diesel vehicles and pay owners compensation.
Last year, US regulators discovered that Volkswagen cars were fitted with software that could distort emissions tests.
The German giant subsequently said 11 million cars were affected worldwide. The US settlement is still pending approval by a judge, but it would be the largest car scandal settlement in the country’s history.
The legal settlement sets aside 10 billion dollars to repair or buy back around 475,000 affected vehicles with 2-litre diesel engines, and to compensate owners with a payment of up to 10,000 dollars. Car owners would still be able to decline the VW offer and sue the firm on their own.
The deal also includes 2.7 billion dollars in funds to offset excess diesel emissions and 2 billion dollars for research into green energy and environment-friendly cars.
Oil prices rose as a looming strike in Norway threatened to cut output in western Europe’s biggest producer, although Britain’s vote to leave the European Union was still weighing on markets.
About 755 Norwegian workers on seven oil and gas fields could go on strike from Saturday, hitting output from the North Sea’s top producer, if a new wage deal is not agreed before a Friday deadline.
A final round of mandatory talks will be hosted by a state mediator on June 30 and July 1 in an effort to avoid disruption that could start the following day. But the price rises came after oil fell to 7-week lows in the previous session on the back of market turmoil over Britain’s vote to leave the EU, reducing investor appetite for volatile commodities like oil.
Japanese shares today continued to roll back losses from last Friday’s sharp post Brexit tumble.
After falling initially in morning trade, the Nikkei 225 index continued to build on Monday’s gains and closed 0.1% higher. But with the yen remaining strong, Japanese exporters continued to suffer.
As investors remain on edge over the possible fallout from Brexit, they are flocking to the yen as a haven, driving the currency higher.
A rise in the yen makes Japanese goods more expensive abroad, potentially damaging the prospects of the country’s crucial export sector.
On Monday, the government in Tokyo had tried to reassure businesses by promising it would take action if needed to rein in the yen. Carmakers Toyota, Nissan and Honda all of which have production sites in the UK – all saw their shares fall today