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