Wednesday, October 28, 2015

Germany: Volkswagen suffers first loss in 15 years

German automaker Volkswagen suffered its first loss in 15 years in the third quarter, in the wake of the scandal caused by its tampering with emissions devices.

In a statement Wednesday, the company said it lost €3.48 billion ($3.84 billion), down from a profit of €3.2 billion ($3.5 billion) for the same period in the previous year.

Volkswagen attributed the loss largely to its need to pay out €6.7 billion ($7.4 billion) for costs in replacing emissions devices in millions of its vehicles.

1 comment:

  1. German auto giant Volkswagen booked Wednesday its first quarterly loss in 15 years in the wake of the global pollution-cheating scandal which also forced it to lower its full-year forecasts...

    VW said provisions related to its admission that it fitted 11 million diesel vehicles worldwide with sophisticated software to skew emissions tests pushed it deeply into the red in the period from July to September.

    The group also warned of further "considerable financial charges" related to legal proceedings over the scam, over which it is the subject of criminal probes in the United States and Germany.

    Volkswagen, which has just been overtaken by Toyota as the world's biggest car maker in terms of sales, ran up a net loss of 1.673 billion euros ($1.85 billion) in the three-month period, compared with a profit of 2.971 billion euros a year earlier.

    The losses were due to a charge of 6.7 billion euros VW took to cover the initial costs of the scandal, primarily a recall of all vehicles fitted with the software scheduled to begin in January 2016.

    Excluding that provision, operating profit would have remained stable at 3.2 billion euros in the three-month period, VW


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