The scandal in which Volkswagen is involved regarding the infamous carbon dioxide emissions is putting the company in the position to pay extra taxes due to an understatement of the aforementioned emissions for around 800, 000 cars in Europe.
As Volkswagen was looking to make some massive spending cuts in order to pay for the emissions scandal, the company’s capacity to do such a thing was challenged by its works council, which only added more pressure to the carmaker that is already facing regulators, investors and upset customers.
The emissions scandal started back in September when the German carmaker admitted it had cheated in the U.S. tests for nitrogen oxide emissions and took bigger proportions this week when the car brand stated it had actually understated the carbon dioxide emissions and fuel consumption in cars sold in Europe, too.
On Friday, a letter addressed to the European finance ministers by Volkswagen AG’s CEO Matthias Mueller, the head of the brand, asked the European countries to charge the carmaker for any extra taxes related to fuel usage and CO2 emissions rather than the motorists.
Analysts estimate that Volkswagen, which is the biggest automaker in Europe, might have to foot a bill worth $38 billion for different fines, lawsuits and car refits in what is thought to be the biggest business crisis over the past 78 years. In order to meet these high costs, Volkswagen has decided on a program of cutting costs that would account for 1 billion Euros. The decision led to immediate discussions with company bosses as no consulations with workers in factories had been had beforehand. The head of VW’s works council, Bernd Osterloch, has stated that “Management is announcing savings measures unilaterally and without any foundation.”