VW is creating an independent U.S. claims programme for the emissions scandal that has plagued the company since September. Hayley Platt looks at the issues.
Another day, another headline for VW. This time it's Volkswagen America. They're creating an independent claims program for owners hit by the emissions scandal. And they've hired the expert who handled the 9/11 compensations and other high profile cases to run it. Ken Feinberg will oversee potential claims from owners of nearly 600,000 suspect diesel vehicles. It's nearly three months since the emissions scandal first surfaced at Volkswagen. But it's still not clear who did what and when. Mint Partners Bill Blain. (SOUNDBITE) (English) BILL BLAIN, CAPITAL MARKETS STRATEGIST, MINT PARTNERS, SAYING: "The potential damage to Volkswagen is currently unguessable, we're not sure how damaging this could eventually become." The European Parliament has set up a committee to investigate the scandal. It aims to find out whether regulators failed to prevent the car industry from cheating emissions tests designed to reduce pollution. But that could take months. BGC's Mike Ingram. (SOUNDBITE) (English) BGC PARTNERS, MARKET ANALYST, MIKE INGRAM, SAYING: "I don't know that many people feel that VW has done a very good job of putting its house in order. I think it was a massive mistake to make the new CEO of VW Matthias Müller the chairman of the supervisory board because the issue of corporate governance within VW, what went wrong, because we still don't really know what went wrong, should have been given to an external party." VW faces more than 500 lawsuits in the U.S. alone. It's hoping to keep claims out of the legal system - instead deal with them direct. As well as regain the trust of its customers and investors.