VW to Delay China Venture Stake Increase Due to Scandal Cost
- German automaker owns 40% of venture with China FAW Group
- VW faces billions of euros in costs after emissions scandal
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Volkswagen AG is delaying its plan to boost its stake in its joint venture with China FAW Group Corp. by two to three years after reviewing the investment in the wake of its emissions-cheating scandal.
The comments by VW China chief Jochem Heizmann, made at an event ahead of the Guangzhou Auto Show on Wednesday and confirmed by the company, come as Volkswagen faces billions of euros in costs for its emissions cheating scandal. VW faces a Friday deadline to present a remedy plan to California regulators for 4-cylinder diesel engines that spew as much as 40 times the allowed amount of smog-producing nitrogen oxide.