Volkswagen said it will take a €2.5bn hit to its third quarter results, as a result of higher costs associated with the repurchase of diesel cars in North America.

The German carmaker released an ad hoc statement on Friday to say the “repurchase / retrofit” programme for 2.0-litre vehicles requires an increase in provisions because it is “considerably more lengthy and technically more demanding” than anticipated.

The diesel emissions scandal, in which VW has admitted to installing software to cheat emissions tests in up to 11m cars worldwide, has already cost the carmaker up to $24bn. The bulk of penalties, buybacks and other costs are in North America, where VW had plead guilty to using “defeat devices”. In Europe, VW maintains its actions were not illegal.

Volkswagen shares fell 2.7 per cent in early trading. Shares of Porsche SE, VW’s parent company, also fell 2 per cent.

VW’s third quarter results are scheduled for October 27.

Image source: AFP

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