The Volkswagen Group’s diesel scandal is costing the company a lot of money.
If things weren’t looking bad before for the German automaker, it could be now. The company released its third quarter financial report and revealed a net loss of $1.9-billion (1.7-billion euro) in the wake of its ongoing dieselgate scandal. It marks the first time the company hasn’t returned a profit in at least 15 years.
Total sales revenue did improve five percent over the same quarter last year to 51.5-billion euro, but operating profits totaled 3.2-billion euro before taxes and without taking into account money spent for the diesel issue or any other special items. The report also revealed that the Volkswagen Group’s net cash totaled 27.8-billion euro at quarter’s end, which is 65 percent more than Q3 2014.
All that becomes bad news when it’s seen that the Volkswagen Group has spent 6.7-billion euro in costs related to the diesel scandal, more than the 6.5-billion euro it originally set aside at the start of the crisis.
Not surprisingly, the company expects that 2015 operating profit will be “down significantly year-on-year” due to “charges related to the irregularities in the software used for certain diesel engines.”
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