Volkswagen’s biggest shareholder said the $15.3 billion settlement with US authorities over its cheating on emissions tests will remove a major roadblock toward a recovery from the scandal once final approval has been granted.

Porsche Automobil Holding SE, which owns 52 per cent of Volkswagen's voting stock, said it remains "fully committed to its role as VW anchor shareholder," the company said at its annual shareholders meeting on Wednesday, a day after the settlement was announced.

With the agreement with US authorities and consumers, "Volkswagen has taken a further important step toward overcoming the diesel issue," Hans Dieter Poetsch, Porsche Holding's chief executive officer and Volkswagen's chairman, said at the meeting in Stuttgart, Germany.

“Despite the current challenging situation, the Volkswagen group has excellent prospects for the future, ” he said.

Volkswagen’s settlement sets an auto-industry record and pushes the limits of the €16.2 billion ($17.9 billion) set aside so far to cover the cost of the scandal.

To absorb the damages from the worst crisis in its history,  Volkswagen all but eliminated dividend payments after posting its first annual operating loss since 1993 last year.

Porsche Holding shareholders will face a less significant cut. The company will pay out €1.004 per ordinary share and €1.01 per publicly traded preference share.

– Bloomberg