Mexican Media Brands
Diesel Charges Drag VW into €4.1 Billion Operating Loss
Volkswagen AG says special charges of €16.2 billion ($18.3 billion) related to its diesel emission cheating scandal pushed the company into a €4.1 billion ($4.6 billion) operating loss in 2015.
#economics
Share
Volkswagen AG says special charges of €16.2 billion ($18.3 billion) related to its diesel emission cheating scandal pushed the company into a €4.1 billion ($4.6 billion) operating loss in 2015.
The company’s net loss last year was €1.6 billion ($1.8 billion), reversing a profit of €10.9 billion in 2014. It was VW first’s full-year loss since 1993.
VW’s group vehicle sales in 2015 declined 2% to 9.93 million units. But a richer product mix increased revenue 5% to €213.3 billion ($240.4 billion). Automotive operations improved cash flow 10% to €23.8 billion ($26.8 billion) and hiked net liquidity 39% to €24.5 billion ($27.6 billion).
The company says the €16.2 billion in identifiable diesel-related charges related to recalls and pending repairs, customer payments, legal costs and vehicle buybacks. VW initially set aside €6.7 billion for those costs.
The company says it will slash its 2015 dividend on common shares to €0.11 ($0.12) from €4.80 in 2014. The dividend on preferred shares will plunge to €0.17 from €4.86.
VW predicts its overall unit sales in 2016 will be flat. But it expects income to shrink 5% because of a “sharp decrease” in passenger car revenue.
RELATED CONTENT
-
When Automated Production Turning is the Low-Cost Option
For the right parts, or families of parts, an automated CNC turning cell is simply the least expensive way to produce high-quality parts. Here’s why.
-
Things to Know About Cam Grinding
By James Gaffney, Product Engineer, Precision Grinding and Patrick D. Redington, Manager, Precision Grinding Business Unit, Norton Company (Worcester, MA)
-
Mustang Changes for 2018
On Tuesday Ford unveiled—using the social media channels of actor Dwayne Johnson (this has got to unnerve some of the auto buff book editors)—the 2018 Mustang, which has undergone some modifications: under the hood (the 3.7-liter V6 is giving way to a 2.3-liter EcoBoost four, and a 10-speed automatic is available), on the dash (a 12-inch, all-digital LCD screen is available for the dashboard), at the tires (12 wheel choices), on the chassis (MagneRide damper technology is being offered with the Mustang Performance Package), and on the exterior (three new paint colors). And while on the subject of the exterior, there are some notable changes—a lower, remodeled hood, repositioned hood vents, new upper and lower front grilles, LED front lights, revised LED taillamps, new rear bumper and fascia.
