Ballpark Estimate: $35 Billion
“Resale values on Volkswagen AG‘s diesel cars in the U.S. have taken a tough hit in the weeks since auto maker’s emissions scandal emerged, falling an average of 13%, or about $1,700 per vehicle since mid-September as car dealers stay away from the tainted vehicles, according used-car pricing guide Kelley Blue Book.”
—“Kelley Blue Book: Volkswagen Diesel Car Values Decline 13%”; Wall Street Journal (10/6/2015)
I’ll leave the number-crunching to the CPA’s, but investors trying to estimate VW’s potential liability have these figures to work with:
A. Number of VW diesel cars reportedly affected worldwide: 11 million
B. Drop in value per car: $1,700
C. “A.” x “B.” = $18.7 billion
D. Add: 30% for legal fees (plaintiff’s attorneys in class action; legal defense, etc.) = $9.35 billion
Grand total: $28 billion
Add-On’s
Of course, that’s just for what are called “compensatory” or “economic” damages.
Add 25% in punitive damages, government fines, etc. and the total (legal) price tag could easily trip $35 billion.
P.S.: A lot of money, to be sure, but nothing Apple couldn’t pay out of petty cash.
See also, “Four Reasons Why Apple Should Buy VW.”