Volkswagen could take 'huge hit' from UK compensation program

Volkswagen Financial Services AG is likely preparing "hundreds of millions" of pounds as it awaits the outcome of a British watchdog program to compensate customers, Sky News reported on Tuesday.

The Financial Conduct Authority (FCA) investigated the financial services units of several automakers, finding that they broke the law by withholding information from customers. It subsequently launched a redress scheme whose scope is currently unclear, as it is facing legal appeals.

According to the report, Volkswagen's accounts will be made public later this week and are likely to hold between £500 million and £1.5 billion in anticipation of the program's launch. Volkswagen Financial Services said earlier this year that the scheme will have a "significant financial impact."