Monday 26 June 2017

Volkswagen slumps to first quarterly loss in at least 15 years

An activist of environmental group Greenpeace holds a protest poster outside the Wolfsburg Volkswagen plant
An activist of environmental group Greenpeace holds a protest poster outside the Wolfsburg Volkswagen plant

Volkswagen slumped to a third-quarter operating loss over costs related to its rigging of diesel emissions tests, its first quarterly deficit in at least 15 years.

VW's operating loss of 3.48 billion euros ($3.84 billion) was in line with the 3.47 billion-euro loss forecast in a Reuters poll of analysts.

VW said the operating group profit will come in "significantly below" year-ago levels because of costs related to the emissions scandal.

The German group stuck to its guidance for full-year deliveries to be on a par with last year's record 10.14 million auto sales.

Volkswagen is looking into whether earlier versions of its current diesel engine contained software capable of rigging emissions tests, potentially widening a scandal that has rocked Europe's biggest carmaker.

The company's Irish boss has apologised to motorists for the breach of trust over the ‘cheat device’ in its recalled cars as he faced a Dail committee grilling.

Lars Himmer told the Dáil Joint Committee on Transport and Communications: “I would like to express my sincere apologies that our Group has significantly let down our customers, our staff, our dealers and the wider public.”

And he revealed that they will begin recalling some of the 107,000 cars, vans and secondhand imports from January. A total of 11 million worldwide are being recalled.

He faced heavy questioning from members who repeatedly told him that people felt badly let down by Volkswagen and that there were serious concerns about the re-sale of the cars involved in the recall.

Mr Himmer told them: “As a Group, we accept that we mishandled these tests and we will fix this at our expense and in a way that minimises any disruption to our customers or other stakeholders.”

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