VW Earmarks $16.8B to Cover Diesel Scandal Costs

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VW Earmarks $16.8B to Cover Diesel Scandal Costs

Volkswagen posted a 4.1 billion ($4.8 billion) operating loss in 2015 thanks to the €16.2 billion ($18.2 billion) the brand set aside to help deal with the diesel emissions scandal. 

In 2014, VW had an operating profit of €12.7 billion, a number it actually managed to exceed in 2015, posting a €12.8 billion operating profit before adding in the emissions money. Once VW’s Chinese joint ventures are factored in, the entire Volkswagen Group posted a €1.4 billion loss after taxes in 2015.

Originally, Volkswagen had earmarked €6.7 billion to cover the costs of the scandal, though it seems that number quickly ballooned to more than double the original expectation.

SEE ALSO: 6 Things You Should Know About the VW Dieselgate Settlement

Volkswagen has a taken the first step towards fixing about 600,000 vehicles in the U.S. fit with cheat devices that fool emissions tests. The brand has pledged to either buyback or fix the affected vehicles, giving customers the choice. It will also offer monetary compensation reported to be up to $5,000 to each customer affected along with pushing forward with new green-car initiatives.

“Were it not for the sizable provisions we made for all repercussions of the emissions issue that are now quantifiable, we would be reporting on yet another successful year overall,” said the Chairman of the Board of Management, Matthias Müller. “We have the firm intention and the means to handle the difficult situation we are in using our own resources,” Müller added.

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  • Bug S Bunny

    $18.2 billion is a good start…keep going.