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Regulators and
prosecutors around the world are investigating the German
company after it admitted in September to installing software in
its cars to cheat exhaust emissions tests, unleashing a scandal
dubbed Dieselgate in the media.
Sources told Reuters on Wednesday that VW would offer to buy
back almost 500,000 diesel cars in the United States. The
carmaker has admitted to cheating on emissions tests for 11
million vehicles worldwide since 2009.
Analysts and shareholders applauded the prospect of a deal,
sending VW shares up 6.4 percent to 128.6 euros per share at
0808 GMT to the top of Germany's blue-chip DAX <.GDAXI> index,
which was up 0.2 percent.
"We welcome the fact that VW appears to be pursuing a broad
compensation program," said Arndt Ellinghorst, analyst at
Evercore ISI.
Two people familiar with the matter said on Wednesday that
Volkswagen would raise its provisions to a double-digit billion
euro amount from 6.7 billion euros to pay for the buyback and
regulatory issues.
Evercore ISI estimates that the costs for cleaning up Dieselgate
will reach 11.4 billion euros.
(Reporting by Edward Taylor; editing by Jason Neely)
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