Volkswagen Posts $1.83 Billion Q3 Loss in Wake of Dieselgate Scandal

By Jesse Sokolow on 28 October 2015
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DSC_0842Embattled automaker Volkswagen, which days ago lost the title of world’s largest automaker to Toyota after holding onto it for six months, said it had a net loss of €1.67 billion or $1.84 billion in the third quarter of 2015, compared with a profit of €2.97 billion in Q3 2014. The loss is the Wolfsburg-based company’s first quarterly decline in over a decade.

The loss stems from a €6.7 billion charge VW took to cover the cost of recalling and repairing what amounts to nine million diesel cars equipped with a defeat device that detects an emissions test in progress and causes the car’s engine to lower emissions to a legal level.

“The initial impact of the current situation is becoming clear,” said Matthias Müller, the company’s CEO, in a statement. “We will do everything in our power to win back the trust we have lost.”

Volkswagen expects the cost of the Dieselgate scandal to far exceed €6.7 billion, however. Profits for the year 2015 are expected to “to be down significantly” from the prior year.

(Photo: Accura Media Group)