(03 January 2020)DAILY MARKET BRIEF 1:Volkswagen in Settlement Talks With Consumer Group in Diesel-Scandal Lawsuit

Volkswagen AG (VOW.XE) is negotiating a settlement with plaintiffs in a lawsuit related to manipulated diesel cars in Germany, the Federation of German Consumer Organizations said. Talks between the German car maker and the plaintiffs are at a very early stage, the organization said, and it is unclear whether a settlement will be reached. "The common goal of the Federation and Volkswagen is a pragmatic solution in the interest of customers," the organization said. The consumer organization is representing more than 400,000 customers in a joint lawsuit, which began in Germany at the end of September last year. In November, the Higher Regional Court (OLG) had recommended a settlement to the two parties to the dispute. At the time, VW had presented a settlement as "hardly imaginable", but had announced that it would be reviewed. The plaintiff, the Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband), had been open to this.

By Vincent Mivelaz