Home Business VW Reports $4 Billion Operating Loss Amid Emissions Scandal

VW Reports $4 Billion Operating Loss Amid Emissions Scandal

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VW has reported a €3.48 billion operating loss for Q3 of 2015, and a €2.52 billion pre-tax loss triggered by its emissions scandal.

The German automaker has taken a charge of €6.7 billion ($7.4 billion) to cover the costs of the scandal.

In September, Volkswagen admitted installing software designed to cheat emissions tests in 11 million of its diesel cars worldwide.VW loss after emissions scandal

VW CEO and chairman of the Board of Management, Matthias Müller, said: “The figures show the core strength of the Volkswagen Group on the one hand, while on the other the initial impact of the current situation is becoming clear. We will do everything in our power to win back the trust we have lost.”

The company said it expects profits for the full year to be “down significantly” as a result of the costs of dealing with the emissions scandal, but it said that it is still forecasting a rise of up to 4% in sales revenue.

Meanwhile VW has started retrenching and announced earlier this month it would reduce its research and development budget. In the last three months it has reduced R&D by over €1 billion.