Norway Files Lawsuit After Losing Lots of Kroner on Volkswagen

Steph Willems
by Steph Willems
norway files lawsuit after losing lots of kroner on volkswagen

Norway is gearing up for a legal fight, and its sights are set on a troubled automaker from Germany.

The country’s sovereign wealth fund, built from oil and gas revenues and assorted investments, plans to file a class-action lawsuit targeting Volkswagen over its diesel emissions scandal, Reuters reports.

The legal action, one of many against the embattled automaker, will take place on German soil at an unspecified date.

“We have been advised by our lawyers that the company’s conduct gives rise to legal claims under German law,” fund spokesperson Marthe Skaar told Reuters. “As an investor, it is our responsibility to safeguard the fund’s holding in Volkswagen.”

The scandal surrounding Volkswagen’s use of a “defeat device” to cheat on emissions testing led to a plunge in the company’s share value. That, in turn, erased 4.9 billion Norwegian krone ($601.4 million) from the $850 billion sovereign wealth fund, money it now wants back.

Volkswagen recently set aside $18.2 billion and slashed its dividend to deal with the financial fallout of the scandal, half of which will be spent on its U.S. troubles, including the buyback (or fixing) of nearly half a million 2.0-liter TDI models.

The remaining 3.0-liter diesel V6 vehicles should be able to stay on the road after receiving a software fix, and possibly a catalytic converter replacement.

[Image: bengt-re/ Flickr ( CC BY 2.0)]

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  • "scarey" "scarey" on May 16, 2016

    Apparently one of the legitimate functions of the Norweigan government is to invest in foreign companies with the intent of making a PROFIT. Contrast that with the apparent agenda of the American government, and especially the BO administration with the full approval of the Obama Republicans in congress, of losing, wasting, and generally pissing away money like it was a wheelbarrow full of Weimar Republic Deutschmarks going into the furnace to heat an old stone house. Maybe our government could take a lesson from the modern day Norsemen, and if not try to make a profit, then at least try not to WASTE money as fast as possible.

    • See 5 previous
    • Lou_BC Lou_BC on May 16, 2016

      @VoGo And you don't want politicians having any easy access to those funds. Alberta had the "Heritage Fund" and pissed it away. They are now hurting due to the collapse of oil prices and now don't have the cash to bail themselves out.

  • Bunkie Bunkie on May 16, 2016

    I have a question for you: Under the U.S. Constitution, who has the authority to decide how our tax dollars are spent? I'll wait while you look it up.

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    • "scarey" "scarey" on May 16, 2016

      @bikegoesbaa Obama has gotten everything that he wanted with the exception of gun control, which was stopped by both democrats and republicans.

  • 28-Cars-Later 28-Cars-Later on May 16, 2016

    "$850 billion sovereign wealth fund" Can I get a loan Uncle Jørgen?

    • See 8 previous
    • Stuki Stuki on May 16, 2016

      You may already have...... With that much money spread around in small (as in non controlling) investments, some of that money is bound to have reached mortgage lenders and credit card companies in the US :) Where it's being unceremoniously wasted, for as long as Americans can get away with it. Poor Norwegians freezing their rear off in the North Sea to pump oil, while in return "we" just sit on our rear and pay for it in empty promises. And fresh printed paper pieces with Washington's face on them.....

  • Sjalabais Sjalabais on May 16, 2016

    Steph, you've got the flag mirrored horizontally. Can you fix that? Tomorrow's 17th May will be Norway's national day. That is a mix of christmas, birthdays and a huge sausage party. Can't mess with the flag now.