Thursday, July 21, 2005

Volkswagen to pay two million Euro to Indian state of Andhra Pradesh

Text from Volkswagen AG.
Wolfsburg, 21 July 2005 - Volkswagen AG is to pay just under two million Euro to the Indian state of Andhra Pradesh. The company is thus assuming responsibility for the damage caused by the suspected illegal dealings of the former Head of Human Resources at Skoda, Helmut Schuster.

According to present findings, former Skoda Board member Dr. Helmuth Schuster acted in India without authority and furthermore misled the state of Andhra Pradesh.
With respect to the payments to Vashishta Wahan arranged by the state of Andhra Pradesh, the Volkswagen Group will assume responsibility for the damage caused amounting to just under two million Euro.

In the context of its investigations to clarify the issue, the Volkswagen Group will however call to account those responsible for the damage – both inside and outside the company. The Volkswagen Group is counting on vigorous support from the Indian authorities.

Volkswagen does not hold and never has held an interest in Vashishta Wahan. Vashishta Wahan was originally set up as a project company which was to have been responsible for building a factory in India for Volkswagen – following an investment decision by the Volkswagen Board of Management which is still pending. Volkswagen remains interested in entering the Indian market.