Norway’s $850 billion wealth fund will seek to join a class action suit in Germany against Volkswagen following revelations the carmaker rigged the exhaust systems of 11 million diesel-powered cars worldwide to pass official emissions tests.
Norges Bank Investment Management “intends to join a legal action against Volkswagen arising out of that the company provided incorrect emissions data,” fund spokeswoman Marthe Skaar said in an e-mailed statement. The fund, which according to data compiled by Bloomberg owns 1.64 per cent in Volkswagen, said it’s acting “to safeguard” its holding in the carmaker.
“It’s the board’s responsibility to ensure accurate and timely information is disclosed to the shareholders,” she said. “Volkswagen informed the public about the incorrect emissions data after US authorities released a notice of violation letter.”
Volkswagen, based in Wolfsburg, Germany, admitted last year that it had manipulated diesel engines with a “defeat device” so emission controls switched on only during pollution tests. The scandal has led to the departure of top managers and the biggest loss in the company’s history. It has set aside €16.2 billion ($18.3 billion) so far to help cover the costs of the deception, and cut its annual dividend 97 per cent.
The Norwegian fund’s intentions were earlier reported by the Financial Times.
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