Volkswagen to take €16.2bn emissions hit
Volkswagen said it will take a €16.2bn hit in its 2015 accounts related to the diesel-emissions scandal identified last year.
The announcement followed the outlines of a deal with US environmental authorities. Under the terms of the proposed deal, Volkswagen would offer to buy back almost 500,000 cars equipped with software that let the cars cheat on emissions tests. However, the deal only applies to American customers.
The company had delayed its earnings announcement until it could get a better estimate of the costs involved.
But analysts say the total costs in fines, legal judgments and lost sales will be significantly higher.
Around 115,000 Volkswagen, Audi, Skoda and SEAT vehicles have been affected by the emissions scandal in Ireland.
It also emerged yesterday that sales of new Volkswagen cars in the UK have fallen by 5pc in 2016 so far compared to the same point last year.
The figures were released last night by the Society of Motor Manufacturers and Traders.
Some 57,443 Volkswagen cars have been registered this year in Britain, which is down from 60,338 in 2015.