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VW's dieselgate provisions unlikely to top 20 billion euro: source
January 11, 2017 / 1:53 PM / a year ago

VW's dieselgate provisions unlikely to top 20 billion euro: source

FRANKFURT (Reuters) - Volkswagen’s (VOWG_p.DE) potential $4.3 billion settlement with U.S. authorities will hike costs for dieselgate, but the latest bill will likely remain below 20 billion euros, a source familiar with the matter said on Wednesday.

A Volkswagen logo is pictured at the newly opened Volkswagen factory in Wrzesnia, Poland, September 9, 2016. REUTERS/Kacper Pempel/File Photo

VW on Tuesday said it was in talks with U.S. authorities about finalizing a $4.3 billion settlement, saying a deal would exceed current provisions.

“We are counting on a sum of 16 billion plus X. The X is likely to be in the 2 to 4 billion range,” a source familiar with the matter, who declined to be named, said on Wednesday.

The carmaker declined to comment.

Because VW has already set aside 18.2 billion euros in provisions for dieselgate, further provisions are unlikely to be hiked by a massive amount, leaving the bill below 20 billion euros, the source said.

Of the 18.2 billion euros amount, VW has already booked a 16.2 bln euros charge in 2015.

Reporting by Andreas Cremer and Ilona Wissenbach; Writing by Edward Taylor; Editing by Sabine Wollrab and Arno Schuetze

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