Volkswagen said to raise emissions scandal provisions to up to €20bn

Beleaguered German car maker Volkswagen is reportedly lifting its provisions to pay for the emissions scandal to between €10bn and €20bn from €6.7bn.

A person familiar with the matter told Reuters: "There is no indication that it will be significantly above €20bn.

"From what we know it will definitely be more than €10bn."

It was understood the sum includes compensation for customers, the repair of manipulated vehicles and a possible fine by the US Department of Justice.

The figure includes the €6.7bn Volkswagen put aside in the third quarter and could be spread out over two years, the person said.

The news came as Vokswagen prepared to appear in court in the US to explain how it will fix affected cars and compensate their owners.

Die Welt reported on Wednesday that VW had reached a deal to pay US diesel owners up to $5,000 each.

However, other reports claimed the car maker would instead buy back 500,000 of the US vehicles affected.

At 1550 BST, VW shares were up 2.1% to €123.45.