Volkswagen to take 16.2bn hit from emissions scandal

Volkswagen to take 16.2bn hit from emissions scandal

German car maker Volkswagen is to take a €16.2bn hit in its 2015 accounts related to the diesel-emissions scandal last year.

As a result, the company said it will post a loss of €1.36bn for the year.

The announcement came ahead of a news conference at its Wolfsburg headquarters that follows the outline of a deal with US environmental authorities.

Under the terms of the proposed deal, Volkswagen would offer to buy back almost 500,000 cars equipped with software that let the cars cheat on emissions tests.

The company had delayed its earnings announcement until it could get a better estimate of the costs involved. Analysts say the total costs in fines, legal judgments and lost sales will be significantly higher.

It comes as several German car makers reportedly prepare to announce they will recall a total of 630,000 cars following an investigation into emissions levels.

Citing unidentified government sources, the dpa news agency reported that the manufacturers would need to change technology used to switch off the vehicles' emissions treatment systems at certain temperatures.

Volkswagen said it will not be able to release results of an internal probe of its emissions scandal this month as expected. The probe conducted by US law firm Jones Day could be completed by the end of the year.

The company said early release of partial results would interfere with settlement negotiations in the US and could hamper co-operation with US law enforcement.

More in this Section

Huawei in US short reprieveHuawei in US short reprieve

No-deal Brexit tariffs could ‘massively reduce’ competitiveness, warn British farmersNo-deal Brexit tariffs could ‘massively reduce’ competitiveness, warn British farmers

UK brewer agrees £2.7bn sale to Hong Kong’s CKAUK brewer agrees £2.7bn sale to Hong Kong’s CKA

Abbey boss sees pay rise 15% despite profit collapseAbbey boss sees pay rise 15% despite profit collapse


Lifestyle

Columnist and trained counsellor Fiona Caine offers guidance on how to cope when your husband is pushing boundaries.Ask a counsellor: ‘My husband is playing games with another woman – what should I do?’

We take a trip down memory lane and check out what happened on this day in years gone by by looking back at some Irish Examiner front pages and highlighting other events which went down in history across the world.August 20, 2019: A look back at what happened on this day in years gone by

More From The Irish Examiner