Volkswagen Group (VW) has issued a profit warning after it was forced to set aside billions of dollars in extra provisions related to the diesel scandal that hit the German manufacturer in 2015.
That year, VW was found to be using illegal software to cheat US diesel emissions tests, using so called ‘defeat devices.’
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The company has already faced huge fines as a result, including a $4.3bn (€3.63bn) fine to US regulators in January. According to some sources, this latest provision could push the total cost of the scandal, including fines, to up to $30bn.
As part of its settlement figure in the US, it also agreed to fix approximately 600,000 cars that used the illegal software or, if the customer chose, to buy the vehicle back.
The German manufacturer is still counting the costs of the scandal. It has found the agreed buy-back/retrofit program for vehicles in North America to be a more technically complex and time consuming implementation than it anticipated.
As such, it has had to set aside an additional €2.5bn to cover these extra costs, which it said would way on its upcoming third quarter results.
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By GlobalDataA complete Interim Report of the Volkswagen Group for the period January-September 2017 will be published on October 27th.
