Volkswagen adds €2.5bn to emissions costs

Volkswagen has added provisions of around €2.5bn to the mounting total from its diesel emissions scandal, which has already cost the company around €23bn.

“The reason is an increase in provisions relating to the buyback/retrofit programme for 2.0l TDI vehicles, which is part of the settlements in North America that is proving to be far more technically complex and time consuming,” the company said in a statement.

Its shares dropped after the statement and were down as much as 3.1% before paring losses. Volkswagen has recalled around 11 million vehicles worldwide since admitting two years ago to manipulating emissions tests in the US. About 8.5 million of those are in Europe.