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Diesel Scandal Pushes VW into a €1.7 Billion Loss in Third Quarter
Volkswagen Group reports a net loss of €1.7 billion ($1.8 billion) in July-September, reversing a €3 billion profit for the same quarter of 2014.
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Volkswagen Group reports a net loss of €1.7 billion ($1.8 billion) in July-September, reversing a €3 billion profit for the same quarter of 2014.
The loss—VW’s first negative quarterly result in at least 15 years—was a result of the company setting aside €6.7 billion ($7.4 billion) in the quarter for the cost of recalling roughly 9 million diesel-powered vehicles rigged to cheat emission tests.
VW’s operating profit for the period plunged to €3.3 billion ($3.7 billion) from €9.4 billion last year. Sales revenue grew 5% to €51.5 billion ($57.0 billion), but retail deliveries declined 3% to 2.35 million units.
VW cautions its full-year earnings for 2015 will be “significantly” lower than last year, when the company’s net profit jumped 20% to €10.9 billion ($12.3 billion).
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